Japan's central bank hikes interest rate to 16-year high of 0.25%

The Bank of Japan (BoJ) on Wednesday hiked the interest rate to 0.25% unexpectedly.

The short-term interest rate rose to 0.25% from 0.1% at its July meeting, while market expectation was keeping at the same level.

In March, the Bank of Japan raised interest rates for the first time in 17 years, the last central bank to drop its negative interest rate policy.

The current level of 0.25% is the highest level since 2008 and the bank hikes rate for double times for the first time since 2007.