IMF Praises Japanese Monetary Policy

The Bank of Japan’s massive stimulus is working, the International Monetary Fund’s mission chief to Japan said, and there is still room to increase purchases of government bonds and exchange-traded funds if a further boost was needed.

Jerry Schiff, who is also deputy director of the IMF’s Asia-Pacific Department, stressed he saw no need for the central bank to offer additional stimulus for now with the world’s third-largest economy in good shape.

“There’s no need for the BOJ to change what they’re doing,” Schiff said. “There’s a rise in actual inflation and a rise in inflation expectations. Neither are very dramatic yet, but are certainly in the right direction,” he told Reuters on Tuesday.

While market volatility and capital outflows have hurt emerging Asian economies, he said some signs in the region suggest Japan will get more support from exports next year.

Indeed, Anoop Singh, the IMF’s top official for Asia, told a seminar in Tokyo that Prime Minister Shinzo Abe’s aggressive stimulus, dubbed “Abenomics”, had helped counter the outflows from the region triggered by expectations of a tapering of the U.S. Federal Reserve’s asset-buying program.

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza