The IMF expects Japan's interest rate hikes to accelerate slightly

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ME News Report, April 14 (UTC+8), the International Monetary Fund (IMF) stated on Tuesday that it expects the Bank of Japan to gradually raise interest rates, but at a slightly faster pace than six months ago. In its “World Economic Outlook” report, the IMF said that Japan’s economy will grow by 1.2% in 2025, with growth slowing to 0.7% in 2026 and 0.6% in 2027, roughly in line with its October 2025 forecast. The government’s fiscal stimulus measures and efforts to curb fuel prices will offset the negative impacts of weak overseas demand and conflicts in the Middle East. As food and commodity prices decline, Japan’s inflation is expected to ease this year and approach the Bank of Japan’s 2% target by the end of 2027. The Bank of Japan’s policy interest rate is expected to gradually increase, with the pace of rate hikes slightly faster than the expectations in October 2025, ultimately moving toward a neutral rate of about 1.5%. (Source: PANews)

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