WASHINGTON –

Japan is unlikely to face an immediate crisis in terms of fiscal soundness because the average maturity of outstanding Japanese government bonds is relatively long, senior International Monetary Fund official Nada Choueiri has indicated in an interview.

Choueiri, deputy director of the IMF's Asia and Pacific Department, urged Japan to leverage this time to formulate a concrete plan for fiscal consolidation, although Japanese long-term interest rates are rising as the country is "moving to a new, better, normal situation." A consumption tax cut should be avoided, and fiscal measures should be highly targeted, she also said.

Japan is "overcoming deflation, and this is a positive thing," Choueiri said, noting that interest rates will rise as the economy normalizes.