Mumbai, Oct. 15 -- The International Monetary Fund (IMF) revised higher on Tuesday its 2025 economic growth forecast for Japan and projected the nation's central bank to gradually raise interest rates over the medium term to around 1.5% from the current 0.5%.
In its World Economic Outlook report, the IMF projected Japan's economy to expand 1.1% in 2025, up from 0.1% last year and higher than the 0.7% growth estimated in July. It expects economic growth to slow to 0.6% in 2026, up 0.1 percentage point from the projection made in July.
An expected pickup in real wage growth will support private consumption, offsetting headwinds from uncertainty over U.S. trade policy and soft external demand, the IMF said.
The BOJ is likely to raise intere...