IMF Sees 1 More BOJ Rate Hike to Neutral as Global Uncertainty Clouds Path
Updated
Updated · Bloomberg · Oct 16
IMF Sees 1 More BOJ Rate Hike to Neutral as Global Uncertainty Clouds Path
3 articles · Updated · Bloomberg · Oct 16
Summary
Rahul Anand, the IMF’s mission chief for Japan, said the fund’s baseline calls for one more Bank of Japan rate increase to bring policy to a neutral setting.
The IMF paired that view with a call for flexibility after the next move, arguing heightened global uncertainty could complicate the pace and timing of any further tightening.
The assessment broadly aligns with Governor Kazuo Ueda’s signal a day earlier that the BOJ will keep raising rates as needed to keep underlying inflation anchored around its 2% target.
Attention now shifts to the BOJ’s upcoming policy meeting and new quarterly forecasts, which investors will parse for clues on whether one more hike is imminent or marks the end of this phase.