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IMF warns of upside risk to Japan inflation, urges BOJ to start preparing for tightening

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The International Monetary Fund’s chief economist Pierre-Olivier Gourinchas spoke on Tuesday, at a news conference held after the release of the IMF’s updated World Economic Outlook report.

  • “Right now, the risk is probably on the upside, that maybe inflation pressures will continue to remain above the target”
  • “Our advice for Japanese authorities there is that right now, monetary policy can remain accommodative, but it needs to prepare itself for the need to maybe start hiking”
  • encouraging the BoJ to “be a bit more flexible and maybe move away from the yield-curve control that it has now.”

The Bank of Japan statement is due on Friday. Previews:

Bank of Japan Governor Ueda

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