The IMF often times doesn’t know its *** from its elbow.
Still, FWIW, IMF Japan Mission Chief Salgado:
-
We do see prospect, potential of more flexibility at long end of
curve under the BOJ’s YCC policy -
there are two-sided risks to Japan’s inflation, including upward
surprises in the shunto wage negotiations -
downside risks to Japan’s inflation outlook are related to global environment,
financial shocks that raise prospects of global recession -
our advice to the BOJ is
to consider allowing for greater flexibility at longer-end yields,
allow longer end of curve to be more determined by market forces
I suspect the BOJ is not looking for advice from the IMF.
incoming Bank of Japan Governor Ueda