A weak yen is beneficial for Japan's economy as the boost to exports exceeds the increase in the cost of imports, a senior International Monetary Fund (IMF) official said on Friday.
Nada Choueiri, the IMF's Japan mission chief, also urged Japan to raise interest rates at a gradual pace and compile supplementary budgets only when a big shock hits the economy.
"We would advise the Bank of Japan to remain cautious, as they have been so far, and to be gradual" in the pace of rate hikes, since there was high uncertainty over the inflation outlook, she said in an interview.
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