IMF Supports Japan's Weak Yen Strategy, Encourages Gradual Rate Hikes

The IMF sees benefits in Japan's weak yen due to increased exports but advises caution in raising interest rates amid economic uncertainties.

• 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.

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