The Bank of Japan raised the base interest rate to 1.25 percent on Friday from the previous 1.0 percent, reaching a level not seen in 31 years.
This decision was made following a two-day meeting of the Monetary Policy Board and was anticipated by markets, which was reflected in global financial markets.
The 0.25 percentage point increase came after the Federal Reserve also raised its key interest rate this week.
Pressure on Japan to raise rates has been exerted by the United States due to concerns related to the weakening Japanese yen. Recently, both countries jointly intervened in the market to support the yen's exchange rate. Currently, the US dollar is trading at approximately 155 yen.