IMF Cuts Japan’s Growth Forecast on Hit From Ukraine War Fallout

A man walks through a street in Tokyo's Shinjuku district on March 8, 2012. Yuriko Nakao/Reuters

TOKYO—The International Monetary Fund (IMF) cut Japan’s economic growth forecast on Thursday and urged policymakers to consider preparing a contingency plan in case the Ukraine crisis derails a fragile recovery.

While rising commodity costs could push up inflation, the Bank of Japan (BOJ) must maintain ultra-easy policy for a prolonged period to sustainably hit its 2 percent inflation target, the IMF said in a staff report after its Article 4 policy consultation with Japan.