Overview

• The IMF believes a weak yen benefits Japan's economy by boosting exports, despite higher import costs.
• Japan's central bank is expected to maintain its interest rate at 0.25% in the upcoming policy meeting.
• The IMF recommends a cautious, data-dependent approach to future rate hikes to manage economic risks.
• Japan's government is considering a supplementary budget to address rising living costs due to the weak yen.
• The Bank of Japan aims to strike a balance in its monetary policy to prevent excessive yen depreciation and market instability.