The Bank of Japan decided Friday to implement its third interest rate hike in a year, raising the policy rate by 25 basis points to 0.5%, as the central bank tries to strike a delicate balance between supporting the domestic economy and keeping the yen from weakening further against the dollar,

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 stably around its 2% target.