IMF urges Bank of Japan to move very gradually with rate hikes
BOJ must keep monetary policy loose amid trade uncertainty
IMF’s Choueiri says growth risks skewed to downside
BOJ not behind the curve on inflation risk
Any fiscal spending plan must be temporary and targeted
The IMF has urged the Bank of Japan to maintain an accommodative stance and raise interest rates only very gradually, citing persistent uncertainty over global trade and domestic wage growth. IMF Asia-Pacific deputy director Nada Choueiri said Japan’s economy has held up well thanks to exports and consumption, but growth risks remain tilted to the downside. She added that the BOJ is not behind the curve on inflation, with price pressures balanced and no signs of overheating. Choueiri also warned that any fiscal stimulus from Japan’s new government should be temporary and targeted, given the country’s heavy debt load.
