IMF projects slightly faster interest rate hikes in Japan
The IMF expects the Bank of Japan to raise rates toward a 1.5 percent neutral setting faster than forecast. Growth is projected to slow to 0.7 percent in 2026.
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The International Monetary Fund (IMF) has adjusted its expectations for monetary policy in Japan, indicating that the BANK OF JAPAN/THE is likely to raise interest rates at a slightly faster pace than previously estimated. While the transition is still expected to be gradual, the IMF's latest World Economic Outlook suggests a steeper trajectory toward a neutral rate of approximately 1.5%.
