IMF expects BOJ to raise rates gradually
The International Monetary Fund projects Japan will see economic growth slow to 0.7 percent in 2026. The IMF expects the Bank of Japan to continue raising interest rates gradually toward a neutral setting.
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The IMF said on Tuesday Japan will likely raise interest rates toward a neutral setting despite projected economic slowing. Growth in the nation is forecast to ease to 0.7% in 2026 from 1.2% last year. The trajectory highlights persistent inflationary pressures affecting the USD/JPY rate.
