BoJ should consider ending yield curve control – IMF
Fund warns inflation risks could force central bank to take “much stronger” action
The International Monetary Fund has urged the Bank of Japan to increase the flexibility of its yield curve control or abandon the policy altogether.
The IMF cited a series of upside risks to inflation in a statement today (January 26) at the end of its Article IV mission to Japan. The weaker exchange rate, border reopening, imported inflation, fiscal support and “higher-than-expected” wage growth are all at risk of driving prices up further. Headline inflation hit 4% in December, double the BoJ
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