Bank of Japan raises interest rate to 0.25%, open to further hike this year

TOKYO -- The Bank of Japan announced on Wednesday an interest rate increase and a bond tapering plan, in an aggressive move that signals the central bank's growing confidence in the recovery of the domestic economy and its concern about a markedly weaker yen.

"The policy rate is still very low even after a hike to 0.25%," BOJ Gov. Kazuo Ueda said at a news conference. "It is still negative after inflation is taken into consideration. We do not view this as a strong brake on the economy."