IMF's Rato on the Japanese economy

In a speech given on 26 February Rodrigo de Rato of the IMF said warned policymakers and investors about increasing growth in yen carry trades and urged Japan to make clear that deflationary pressures are being rooted out.

Rato, addressing graduates from Harvard Business School, said there were great uncertainties about the overall size of the carry trades, which are evident in capital flows into countries like Brazil and Turkey, and in the growth of yen-denominated mortgages in countries ranging

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