[IMF Expects Bank of Japan to Raise Rates Once More to Neutral Level] Golden Finance reported on October 16 that Rahul Anand, head of the IMF's Japan mission, stated on Friday that the IMF expects the Bank of Japan to raise interest rates once more, bringing the policy rate closer to a neutral level. However, given the heightened global uncertainties, subsequent monetary policy adjustments should remain flexible. Currently, the Bank of Japan is gradually approaching the neutral rate level. The IMF continues to estimate Japan's neutral rate range to be between 1.1% and 2.2%, with a midpoint estimate of approximately 1.5%. The Bank of Japan's current policy rate of 1.25% is effectively within this estimated range. Anand anticipates that with energy prices remaining elevated and companies more frequently passing on rising costs to consumers, inflationary pressures in Japan will persist. He expects Japan's inflation rate to rise above 2% and gradually return to this level by the end of 2027.