The Bank of Japan raised its key policy rate Friday to the highest level in 17 years, as Governor Kazuo Ueda continues his mission to return to central bank orthodoxy.

The Bank of Japan raised interest rates on Friday in a widely expected move, reflecting its growing optimism that wages will continue rising and keep inflation sustainably around its 2% target.

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As interest rates rose, banks charged more for credit cards and loans, but held rates paid on savings accounts.

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