IMF head hails Japan tax hike plan, urges more steps to fix debt
TOKYO (Reuters) - The head of the International Monetary Fund said on Friday Japan's plan to raise its sales tax is appropriate and timely but more measures should be taken to fix its public finances.
IMF Managing Director Christine Lagarde, speaking at a news conference, also welcomed the European Central Bank's move to cut its deposit rate, calling it an important step to activate interbank markets.
The European Central Bank cut its main interest rate to a record low on Thursday to prop up a deteriorating euro zone economy and reduced its deposit rate, which acts as a floor for the money market, to zero from 0.25 percent.
Lagarde also said the yen was moderately overvalued. When asked about Japan's yen-selling intervention in case of rapid currency swings, she said it would be justifiable if Japan duly consulted with other countries.
(Reporting by Stanley White and Tetsushi Kajimoto; Editing by Michael Watson)
- U.S. Mega Millions lottery up to $400 million, 2nd-biggest ever
- Pope Francis named Time's Person of the Year |
- Uruguay becomes first country to legalize marijuana trade
- Thousands of South Africans line up to see Mandela lie in state |
- China bitcoin arbitrage ends as traders work around capital controls
Time magazine named Pope Francis as its Person of the Year, crediting him with shifting the message of the Catholic Church. Slideshow