IMF says further, gradual, BOJ short-term rates hikes should continue, data dependent

IMF Executive Board statement on consultation with Japan:

  • Further hikes in Japan’s short-term policy rate should proceed at a
    gradual pace and be data-dependent
  • Japan’s
    long-standing commitment to flexible exchange rate regime will help
    absorb shocks, support monetary policy’s focus on price stability
  • BOJ’s
    state-contingent purchases of JGBs will help mitigate excessive
    shifts in yields that could undermine financial stability during
    policy transition
  • Clear, effective
    communication strategy by BOJ that continues to underscore factors
    behind pace of rate hike will be key

USD/JPY update, moving sideways circa 156.20 ish:

usdyen imf boj 14 May 2024 2

This article was written by Eamonn Sheridan at www.forexlive.com. Source