IMF Japan mission chief Ranil Salgado said Yen’s recent movements “reflect fundamentals”, adding, “we see both positive and negative effects in yen depreciation.”
He noted that risks to inflation in Japan are on the upside. But, “inflation in the medium-term will remain well below the BOJ’s target once the cost-push factors go away,” he said.
“We consider it appropriate for the BOJ to maintain monetary easing until inflation is achieved in a stable and durable manner.”
