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
—
I’m pretty sure Bank of Japan Governor Ueda doesn’t need any advice at all from the IMF.