Japan’s central bank raised its benchmark interest rate Tuesday for the first time in 17 years, ending a longstanding policy of negative rates meant to boost the economy.

The Bank of Japan's short-term rate was raised to a range of 0 to 0.1 percent from minus 0.1 percent at a policy meeting that confirmed expectations of a shift away from ultra-lax monetary policy.

The interest rate hike was the first since February 2007. The BOJ had remained cautious about “normalizing” monetary policy, or ending its negative benchmark borrowing rate, even after data showed inflation at about its target rate of 2 percent in recent months. (AP)