Via FT
The International Monetary Fund has called on the Bank of Japan to expand its monetary easing in an all-out effort to push inflation to 2 per cent.
In a dramatic intervention, the IMF warned Tokyo that the risks to Japan’s economy “are tilted to the downside”, and called for reinforcement to all three arrows of the Abenomics stimulus.
The IMF‘s call will pile pressure on Haruhiko Kuroda, BoJ governor, to take more action just as he signalled a move the other way — keeping monetary policy on hold, and striking a more upbeat tone on Japan’s economy.
The clash highlights growing tension more than two years after the start of prime minister Shinzo Abe’s three-pronged stimulus, with signs of stronger growth, but inflation still hovering close to zero.
Mr Kuroda insists the BoJ’s massive stimulus is working as planned, with rising incomes driving a “virtuous cycle” towards higher inflation, but the IMF said “the desired regime shift has not yet materialised”
The International Monetary Fund has called on the Bank of Japan to expand its monetary easing in an all-out effort to push inflation to 2 per cent.
In a dramatic intervention, the IMF warned Tokyo that the risks to Japan’s economy “are tilted to the downside”, and called for reinforcement to all three arrows of the Abenomics stimulus.
The IMF‘s call will pile pressure on Haruhiko Kuroda, BoJ governor, to take more action just as he signalled a move the other way — keeping monetary policy on hold, and striking a more upbeat tone on Japan’s economy.
The clash highlights growing tension more than two years after the start of prime minister Shinzo Abe’s three-pronged stimulus, with signs of stronger growth, but inflation still hovering close to zero.
Mr Kuroda insists the BoJ’s massive stimulus is working as planned, with rising incomes driving a “virtuous cycle” towards higher inflation, but the IMF said “the desired regime shift has not yet materialised”
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