Japan's national flag flutters at the Bank of Japan headquarters building in Tokyo, Tuesday. AFP-Yonhap
TOKYO — The Bank of Japan hiked interest rates to a 31-year high Tuesday as it battles inflation caused by the Middle East war, even after Washington and Tehran agreed a peace deal.
The central bank for the world's fourth-largest economy raised its benchmark rate 25 basis points to 1.0 percent, the highest since 1995 and marking the first increase since December.
The widely expected decision followed rate increases by the European Central Bank and Bank Indonesia last week after the conflict caused economic havoc and rising prices worldwide.
With US inflation at a three-year high, expectations are growing that the Federal Reserve will follow suit, albeit not at new boss Kevin Warsh's first rate-setting gathering this week.
