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 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.

The Bank of Japan has raised short-term interest rates by a quarter point, the highest in 17 years, signalling efforts to normalise monetary policy in response to persistent inflation and increasing wages.

Pakistan's central bank is expected to lower its key interest rate by at least 1 percentage point on Monday, analysts said, in its sixth straight cut as it attempts to revive economic and business sentiment as inflation slows sharply.

Turkey's central bank lowered its key interest rate by 2.5 percentage points to 45%. (AP Photo/Francisco Seco) ANKARA, Turkey (AP) — Turkey’s central bank lowered its key interest rate by 2.5 percentage points to 45% on Thursday,

The central bank reduced its one-week repo rate to 45% from 47.5% as a cycle of higher borrowing costs bears fruit in cooler price rises.