Regarding the Japanese economy, the International Monetary Fund (IMF) has stated that the inflation rate is expected to remain above 2% until the second half of next year, and that short-term policy interest rates should be gradually raised in terms of monetary policy. I suggested.
An IMF delegation held a press conference in Tokyo on the 9th regarding Japan's economic situation and economic policies.
Regarding Japan's economic situation, it is expected that the economy will continue to recover this year, and that the price increase rate is expected to remain above 2% until the second half of next year.
Regarding the Bank of Japan's monetary policy, he recommended that short-term policy interest rates be raised in stages and that the framework of yield curve control, which sets operational targets for long-term and short-term interest rates, be abolished.
Furthermore, in order to ensure fiscal sustainability, efforts toward fiscal soundness are necessary, and regarding the flat-rate tax cuts such as income tax that will be implemented from June this year, ``tax cuts that are not targeted are It is thought that the impact on growth will be limited."
Geeta Gopinath, first deputy managing director of the IMF, said at a press conference, ``I think this year is the starting point for raising short-term policy interest rates, once good data comes in. There is a downside risk to the economy, so we will raise them gradually.'' That's important," he said.