[IMF Urges Bank of Japan to Continue Raising Interest Rates] The International Monetary Fund (IMF) has urged the Bank of Japan to continue raising interest rates, despite the “significant new risks” to Japan’s economic outlook posed by the Middle East conflict. In a statement released on Friday in Washington, the IMF noted that although Japan’s economic growth is expected to slow partly due to the Iran conflict, gradual wage growth will support consumption. The statement was issued following policy consultations with Japan. The IMF stated, “The economic outlook and inflation risks are broadly balanced,” and inflation is expected to approach the Bank of Japan’s 2% target by 2027. The IMF indicated that its Executive Board agrees that the Bank of Japan’s approach to exiting its accommodative monetary policy is appropriate. The statement added, “They emphasized that as underlying inflation approaches the Bank of Japan’s target, a flexible, well-communicated, and data-driven approach to gradually raising interest rates to a neutral level should continue.” (Sina Finance)