The pace of interest rate cuts has been the focus for much of the world, but in Japan, things are going in the opposite direction. The BOJ just hiked its key policy rate to its highest level in 17 years,

The Bank of Japan raised interest rates to a 17-year high of 0.5%, with Bitcoin and major altcoins surging by 3-6%.

Japan's core consumer prices rose 3.0% in December year-on-year to mark the fastest annual pace in 16 months, likely cementing a central bank rate hike later in the day and retaining bets that borrowing costs will keep rising from ultra-low levels.

The board decided to raise the BOJ's short-term policy rate to 0.5% from 0.25% by an 8-1 vote. Board member Toyoaki Nakamura dissented to the decision.

The BOJ hiked short-term lending rates by a quarter point to 0.5%, which had been already priced into money markets after central bank officials, including Governor Kazuo Ueda, had clearly signalled earlier this month that policy tightening was on the table.