# IMF Predicts BOJ Rate Hikes to 0.7% Growth

> IMF forecasts Bank of Japan rate hikes toward neutral level as 2026 growth slows to 0.7%.
- Title: IMF Predicts BOJ Rate Hikes to 0.7% Growth · BigGo Finance
- Summary: IMF forecasts Bank of Japan rate hikes toward neutral level as 2026 growth slows to 0.7%. The IMF predicts Japan's 2026 economic growth will slow to 0.7% as…
- Keywords: imf, bank of japan, world economic outlook, monetary policy, yen, currency intervention, interest rates, japan growth, finance, markets, Predicts, BOJ
- Source: BigGo Finance — https://finance.biggo.com/news/d678b570-6465-4e3e-a0cc-411b645fe8e9
- Author: BigGo Finance
- Published: 2026-10-13T02:35:22+00:00
- Read time: 1 min
- Topics: imf, bank of japan, world economic outlook, monetary policy, yen, currency intervention, interest rates, japan growth, finance, markets
## IMF World Economic Outlook
The IMF released its World Economic Outlook on the 13th projecting Japan's 2026 growth rate to slow to 0.7%.
## Bank of Japan Rate Hike
The Bank of Japan raised its policy rate to 1.25% in September, the highest level in 31 years.
## Monetary Policy Tightening
The IMF stated the Bank of Japan is likely to raise rates gradually toward a neutral level to combat inflation.
## Energy Shock Impact
Japan's growth will slow from 1.2% to 0.7% in 2026 due to rising energy prices and currency depreciation.
## Currency Intervention
The IMF noted joint Japan-U.S. intervention to support the yen amid increased exchange rate volatility.
## Inflation Management
The IMF warned that temporary currency intervention may be needed if depreciation becomes self-reinforcing.
## Key takeaway

The IMF predicts Japan's 2026 economic growth will slow to 0.7% as the Bank of Japan gradually raises interest rates toward a neutral level.