Reported about 10 hours ago
The International Monetary Fund (IMF) has cautioned Japan to remain vigilant against potential spillover effects due to increasing volatility in foreign markets, which could impact domestic liquidity for financial institutions. The IMF highlighted concerns regarding the fallout from the Bank of Japan's interest rate hikes, including higher debt-servicing costs and possible corporate bankruptcies. It urged close monitoring of liquidity conditions and a robust debt management strategy to navigate these challenges, particularly in light of Japan's commitment to a flexible exchange rate regime and the gradual adjustment of interest rates.
Source: YAHOO