The IMF expects the BOJ to raise its policy rate once more toward the neutral rate, after which it is expected to respond flexibly in light of rising global uncertainty.
The International Monetary Fund (IMF) expects the Bank of Japan to raise its policy rate once more toward the neutral rate. The BOJ's interest-rate level is therefore expected to move closer to the neutral rate.
At the same time, with global uncertainty rising, the BOJ is expected to retain flexibility in its subsequent monetary policy response, and reports indicate that it could change course depending on conditions.