The Bank of Japan raised its short-term interest rate to the highest in seventeen years on Friday as expected, aiming for a

The Bank of Japan was expected to hike its main interest rate on Friday by the most in 18 years despite fears of economic turmoil under US President Donald Trump.

The key inflation gauge hit 3% for the first time in 16 months, underscoring Japan's sustained price momentum just hours before the central bank is expected to hike rates for a third time under Gov. Kazuo Ueda.

The Bank of Japan is expected to raise rates by 25 basis points later in the day as it concludes its monetary policy meeting.

Japans inflation remained elevated in December, reinforcing expectations for a Bank of Japan (BOJ) interest rate hike. National core consumer price index (CPI), excluding fresh food, rose 3% year-on-year,