IMF Urges BOJ to Keep Raising Rates: Article IV Report Targets 1.5% Neutral Rate, Warns on Consumption Tax Cuts
The IMF's April 2026 Article IV report recommends the BOJ continue gradual rate hikes toward neutral. With two hikes in 2026 and one in 2027 targeting 1.5%, we analyze the impact on yen, JGB yields, carry trades, and the IMF's warning on consumption tax cuts.