IMF Managing Director Kristalina Georgieva said the Bank of Japan was conducting an appropriate review of its monetary policy stance, but should keep policy accommodative because the country faces low inflationary pressures. | Reuters
Shoppers check foods at a supermarket in Tokyo, Japan Jan 10, 2023. REUTERS/Issei Kato
WASHINGTON – International Monetary Fund Managing Director Kristalina Georgieva on Thursday said the Bank of Japan was conducting an appropriate review of its monetary policy stance, but should keep policy accommodative because the country faces low inflationary pressures. Georgieva told reporters that an adjustment to the central bank’s debt yield curve control regime was not driven by an increase in inflation, which remains very close to the bank’s 2 percent target.“BOJ rightly pursued accommodative policy. The pressure from labor on increases in labor compensation has not led to any dramatic change. In other words, there is no driver for inflation from there.”
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