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2026-04-04 15:26:19
[IMF Urges Bank of Japan to Continue Raising Interest Rates Despite Economic Risks from Middle East Conflict] (1) The International Monetary Fund (IMF) said in a statement released in Washington on Friday that it urged the Bank of Japan to continue raising interest rates despite “significant new risks” to the Japanese economic outlook from the Middle East conflict. (2) The IMF believes that although Japanese economic growth is expected to slow due to factors such as the conflict in Iran, gradual wage increases will support consumption, and the economic outlook and inflation risks are generally balanced. It expects the inflation rate to approach the Bank of Japan’s 2% target in 2027. (3) The IMF Executive Board agreed that it was appropriate for the Bank of Japan to exit its loose monetary policy and pointed out that as the potential inflation rate moves toward the target, interest rates should continue to be raised gradually to a neutral level in a flexible, well-communicated and data-driven manner.
