IMF's Rato says Japan's deflation almost over

International Monetary Fund Managing Director Rodrigo de Rato said Thursday 3 August that "deflation has, by most measures, ended" in Japan.

Because of the limited risk at present of inflation surging, the BOJ's "tightening cycle started in mid-July to return to more normal levels of interest rates needs to be gradual," Rato said in a speech at the Foreign Correspondents' Club of Japan.

Rato also noted Japan's economic recovery, saying that recent developments have been "very encouraging."