The policy board of Bank of Japan hiked its key interest rate by a quarter percentage point to 0.25% Friday, putting an end to its five-year policy of keeping rates near zero percent. In addition to tightening the overnight call rate, the central bank also chose to boost the official discount rate, or the interest rate banks charge each other in the interbank market. Worries over escalating violence in the Middle East also impacted the stocks negatively.
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