The International Monetary Fund is urging Japan to do more to cut its huge public debt. It says doubling the consumption tax to 10 percent by 2015 is not enough.

In its Fiscal Monitor Update released on Tuesday the IMF recommended that Japan come up with a plan to consolidate spending over the medium-term.

Senior IMF official Philip Gerson told reporters Japan should raise the consumption tax to 15 percent. He did not recommend on the timing of the increase.

He warned that while the possibility of Japanese bond yields soaring is low, that situation may not continue forever.

News credit: http://www3.nhk.or.jp/daily/english/20120125_15.html

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