IMF Expects More BOJ Hikes, With Greater Confidence on Inflation
- Senior official says BOJ has handled its exit policy well
- IMF’s Choueiri advises caution against backdrop of uncertainty
The Bank of Japan headquarters in Tokyo.
Photographer: Soichiro Koriyama/BloombergThis article is for subscribers only.
The International Monetary Fund is gaining confidence over the sustainability of Japan’s inflation, and expects the Bank of Japan to stay on a gradual path of raising interest rates in coming years, according to its mission chief for the nation.
“We have seen indicators of consumption starting to increase, and we have seen employees’ scheduled earnings starting to increase, and this is an indication of a positive price-wage cycle working in the economy,” Nada Choueiri, the Japan mission chief, said Tuesday in an interview on the sidelines of the IMF and World Bank annual meetings in Washington. “This is why we are more confident.”