Reuters on comments from a senior International Monetary Fund (IMF) official:
- Bank of Japan likely to push back timing of further rate hikes if IMF’s reference scenario materializes
- Japan’s inflation likely to converge to BOJ’s target sometime in 2027 rather than in 2026, as initially expected
- Balance of risks is to the downside for Japan’s economic growth, inflation
- Yen remains safe-haven currency given strength, predictability and stability of Japan’s economy
- IMF supports Japan’s commitment to flexible foreign exchange regime, which helps absorb shocks
