The Bank of Japan is likely to push back the timing of further interest rate hikes as uncertainty triggered by U.S. tariffs has heightened downside risks to growth and inflation, a senior International Monetary Fund official said on Wednesday.

The Bank of Japan should be flexible and data-dependent in proceeding with any further interest-rate hikes as US tariffs weigh on the economy and add to uncertainty, the International Monetary Fund urged.

Bessent spoke to the Institute of International Finance as both the International Monetary Fund and World Bank held their spring meetings in Washington. On Monday, the IMF downgraded its forecast of U.S. economic growth to 1.8% this year, a reduction from the 2.7% it estimated as recently as January.

Treasury Secretary Scott Bessent said the U.S. remains committed to playing a leadership role in the IMF and World Bank but wants to see changes.

The International Monetary Fund on Tuesday cut its 2025 growth outlook for emerging economies including Mexico and China, warning that tighter funding conditions and a scarcity of development cash could inflict pain on developing nations.