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
