IMF urges BOJ flexibility on rates as tariffs dent outlook

The Bank of Japan should be flexible in considering further interest rate hikes as U.S. tariffs on imported goods amplify economic uncertainty, with the International Monetary Fund urging a data-dependent approach. Nada Choueiri highlighted that central banks must remain adaptable and transparent in their decision-making to navigate volatile conditions effectively. The IMF's latest report underscored the challenges posed by U.S.-led global trade tensions, which have further strained forecasts for Japan's 2025 economic growth.