International Monetary Fund: The Bank of Japan may raise interest rates one more time to approach the neutral rate, and is advised to maintain its policy.

The IMF's Japan mission chief said the IMF expects the Bank of Japan to raise interest rates one more time, bringing the policy rate closer to the neutral rate. Mission chief Rahul Anand emphasized that amid rising global uncertainty, monetary policy needs to be data-dependent and flexible. Anand said Japan's fiscal management has been "quite strong," but also warned that the country's debt burden remains extremely high and prudent fiscal policy must be maintained.