Too early for Bank of Japan to tighten monetary policy – Crypto News – Crypto News
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Too early for Bank of Japan to tighten monetary policy – Crypto News

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International Monetary Fund (IMF) Chief Economist Pierre-Olivier Gourinchas said on Thursday, it is “too early for the Bank of Japan (BoJ) to tighten monetary policies as re-anchoring inflation expectations to its 2% target will take time.

Additional quotes

BoJ must stand ready to tighten monetary policy if inflation remains too elevated.

BoJ will likely find it very difficult to tighten monetary policy while maintaining yield curve control.

It is probably safer for the BoJ to first move away from control of long-term yields, then raise short-term rates when the need arises to tighten policy.

Market response

USD/JPY is catching a fresh bid on the above comments, trading 0.13% higher on the day at 139.52, as of writing.

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