TOKYO -- Japan's central bank on Wednesday decided to raise its short-term interest rates to 0.25 percent from the range of zero and 0.1 percent, local media reported.

The second policy rate hike this year, which was announced after a two-day monetary policy meeting, marked the first "additional rate hike" since February 2007, national broadcaster NHK reported.

The Bank of Japan also decided to halve its monthly government bond purchases to 3 trillion yen (about 20 billion US dollars) from around 6 trillion yen by March 2026, signaling steps toward normalizing its monetary policy.