Japan's central bank has increased the cost of borrowing to its highest level in 17 years after consumer price rises accelerated in December. The move by the Bank of Japan (BOJ) to raise its short-term policy rate to "around 0.5 per cent" comes just hours after the latest economic data showed prices rose last month at the fastest pace in 16 months.

The Bank of Japan looks set to raise interest rates this week unless Trump’s inauguration address as U.S. president on Monday rattles financial markets, say people familiar with the central bank’s thinking.

The move would mark the central bank's first rate hike since July last year, when it increased rates to 0.25%.

The Bank of Japan (BOJ) hiked interest rates on Friday to their highest level in 17 years despite fears of economic turmoil under US President Donald Trump.

Asian shares advanced Friday after U.S. stocks rose to a record and the Bank of Japan raised its key lending rate. U.S. futures edged lower and oil prices fell after U.S. President Donald Trump called on oil-producing countries to reduce the price of crude,

The Bank of Japan raised interest rates on Friday to their highest since the 2008 global financial crisis, underscoring its confidence that rising wages will keep inflation stable around its 2% target.

World shares advanced Friday after U.S. stocks rose to a record and the Bank of Japan raised its key lending rate.