TOKYO: The Bank of Japan should consider ending its yield curve control and massive asset purchases now, then gradually raise short-term interest rates, the IMF said on Friday, as markets ramp up bets on a near-term turn in the central bank's ultra-easy policy.
As Japan's economy continues to recover, domestic demand is replacing rising costs as the main driver of inflation with the output gap closing and labour shortages intensifying, the International Monetary Fund said.
