Japanese reform efforts praised by IMF's Rato

The new head of the International Monetary Fund on Tuesday praised Japan's recent economic reforms saying the reforms had paid off and the future can be even brighter.

"Reforms have paid off," IMF Managing Director Rodrigo Rato said during a two-day visit to Japan, his first since taking office earlier this month.

But while praising the recovery Rato warned of continuing deflationary pressures which stifle economic activity.

Japan has seen deflation for several years, and the Bank of Japan has