IMF sees slower economic growth in Japan

Japan's economy will show slower growth in 2005 but should gather steam as the year progresses, according to the IMF's World Economic outlook Wednesday, urging the Bank of Japan to keep monetary policy loose until the deflation threat is removed.

In its twice-yearly report of economies all over the world, the International Monetary Fund forecast the world's second largest economy would grow just 0.8 percent this year, sharply lower than the 2.3 percent pace the lender forecast in September.