IMF expects BOJ to delay further rate hikes due to tariff uncertainty
From Yahoo Finance: 2025-04-23 19:04:00
The Bank of Japan is likely to delay rate hikes due to U.S. tariffs’ uncertainty, says IMF. Inflation to hit 2% target in 2027, not 2026. Analysts expect steady rates till June, with a slight majority predicting a 0.25% hike next quarter. IMF projects Japan’s economy to grow 0.6% in 2025 and 2026.
Trump’s 24% tariffs on Japan’s exports paused until July. 10% universal rate and 25% car duty remain. PM Ishiba announces plans to cut gas prices, offer electricity subsidies. IMF against spending or tax cuts. Japan must raise sales tax to tackle public debt.
IMF official states yen is a safe-haven currency amid economic challenges. Currency rebounded against the dollar. Japan’s commitment to a flexible exchange-rate regime praised for helping economy absorb shocks. Officials support Japan’s commitment to the regime.
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