IMF Chief Economist: It is expected that the Bank of Japan will raise interest rates twice this year and again next year

On January 18th, the Chief Economist of the International Monetary Fund (IMF), Quresha, stated on Friday that the Bank of Japan is expected to raise interest rates twice in 2025 and two more times in 2026. In its latest World Economic Outlook, the IMF predicts that the Japanese economy will grow by 1.1% in 2025 and slightly slow down to 0.8% in 2026, maintaining its October forecast unchanged. Quresha added that a gradual tightening pace is reasonable and will ensure that the economy can achieve its inflation target.