The central bank lifted its policy rate by 25 basis points to 1.25% in a split 7-2 vote, citing inflation risks, according to Anadolu Agency.
Central bank cites inflation risks as it lifts benchmark rate from 1 percent, its highest level in three decades
The central bank's policy board voted 7-2 to lift rates, with two members dissenting from the decision, according to CNBC.
Yen weakens, bond yields fall and stocks rise following a Bank of Japan rate increase, an unusual combination that has drawn attention from analysts.
The central bank lifted its benchmark rate to 1.25%, following similar tightening moves by the US Federal Reserve and European Central Bank
The Bank of Japan is widely anticipated to raise its benchmark interest rate by 25 basis points, with Governor Kazuo Ueda expected to proceed cautiously to avoid market volatility, according to Anadolu Agency.