Bank of Japan lifts rates to 0.25%

Japan's central bank increased the cost of borrowing for only the second time in 17 years as it tried to tighten monetary policy in the world's fourth-largest economy.

The Bank of Japan (BoJ) lifted its key interest rate to 0.25%" from the previous range of 0% to 0.1%. It also announced a plan to phase out its extensive bond-buying program as it retreats from a decade of stimulus measures.

In March, the BoJ raised borrowing costs for the first time since 2007, and was the last country to have negative interest rates.

Reporting by Frank Prenesti for Sharecast.com