IMF cuts Japan growth forecasts, warns over deflation

The International Monetary Fund on Tuesday cut its growth forecast for Japan, saying the economy would shrink next year as a sales tax rise dents consumer spending and warning of a return to deflation. It also warned that inflation would sink into negative territory this year -- way below the Bank of Japan's 2.0 percent target -- owing to weak energy prices and the growth-sapping impact of a strong yen. "Deflation risks remain a concern in Japan and several euro area countries," the IMF said in