According to Jinshi Data on August 24, the International Monetary Fund (IMF) said that the Bank of Japan can gradually raise interest rates as the increase in inflation expectations leaves further room for the normalization of its ultra-loose monetary policy.

IMF chief economist Gulan Shah said the pace of further rate hikes will be very data-dependent, and the Bank of Japan will pay attention to the pace of inflation, wage growth and inflation expectations as it normalizes policy.

Gulansha pointed out that Japan's current inflation rate is above 2%, and inflation expectations have begun to move towards the Bank of Japan's 2% target, and may even be slightly higher than this target, so the Bank of Japan is normalizing monetary policy.

He added that according to the IMF's assessment, there is still room for further normalization of monetary policy, with policy rates gradually raised over time.