IMF says its too soon for the BOJ to tighten monetary policy
International Monetary Fund's chief
economist Pierre-Olivier Gourinchas spoke with Reuters.
In brief:
Too early for BOJ to tighten monetary policy as re-anchoring
inflation expectations to its 2% target will take time- BOJ must stand ready
to tighten monetary policy if inflation remains too elevated - BOJ will likely find
it very difficult to tighten monetary policy while maintaining yield
curve control - It is probably safer
for BOJ to first move away from control of long-term yield, then
raise short-term rate when need arises to tighten policy
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I'm pretty sure Bank of Japan Governor Ueda doesn't need any advice at all from the IMF.
This article was written by Eamonn Sheridan at www.forexlive.com.
Source: IMF says its too soon for the BOJ to tighten monetary policy (https://www.forexlive.com/centralbank/imf-says-its-too-soon-for-the-boj-to-tighten-monetary-policy-20230601/)
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