Bank of Japan Raises Key Rate, Threatening Growth Plans

'Japan's PM hopes to boost growth through public spending. Higher borrowing costs threaten her plans'

The Bank of Japan, the last major central bank to maintain ultra-low interest rates, raised its key rate by a quarter point on Tuesday, bringing it to 1%, the highest level since 1995. This move could dampen business activity and increase the public debt burden, says columnist Isabelle Chaperon.