"Concerns resurfaced once again recently when looser monetary policy in Japan and other factors prompted a large depreciation of the yen"
-The International Monetary Fund
The world's third largest economy is expected to grow 1.6% this year, as the central bank's new monetary easing policy will provide substantial stimulus. The International Monetary Fund sharply raised its growth forecast, up from 1.2% estimated in January. At the same time, the Washington-based organization doubled its forecast for the next year for Japan to 1.4%, up from the earlier projected 0.7%. Latest announcement made by the BoJ Governor Haruhiko Kuroda and the introduction of the aggressive monetary easing, have driven the value of the Japanese Yen sharply lower against the U.S. Dollar, causing several other major economies to complain that the country is trying to depreciate its currency.
"In Japan, the new quantitative and qualitative easing framework of monetary policy adds substantial further monetary stimulus and should help accelerate the achievement of the Bank of Japan's new 2 per cent inflation target," the report said. "Concerns resurfaced once again recently when looser monetary policy in Japan and other factors prompted a large depreciation of the yen," the IMF report said.
"Global economic prospects have improved again but the road to recovery in the (world's leading) advanced economies will remain bumpy," the report said.
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