“In the near term, the focus should shift to tighten fiscal policy and wind down unconventional monetary policy, while maintaining financial stability,” the IMF said.
THE Bank of Japan (BoJ) should consider ending its yield curve control and massive asset purchases now, then gradually raise short-term interest rates, the International Monetary Fund (IMF) says, as markets ramp up bets on a near-term turn in the central bank’s ultra-easy policy.
As Japan’s economy continues to recover, domestic demand is replacing rising costs as the main driver of inflation with the output gap closing and labour shortages intensifying, the IMF said.
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