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IMF Urges BOJ to Prepare for Rate Hike in Case Inflation Flares
The International Monetary Fund said the Bank of Japan needs to be prepared to raise interest rates in case inflation unexpectedly flares, though its accommodative policy stance remains appropriate for now. “The Bank of Japan needs to also prepare and be ready to raise rates if somehow inflation were to rise faster and the inflation rates would exceed significantly the central bank’s inflation target,” IMF Chief Economist Pierre-Olivier Gourinchas told reporters in an online briefing ahead of Tuesday’s release of the World Economic Outlook update. The BOJ gave a boost to market speculation that the end of the ... (full story)