IMF: The Bank of Japan will be more accommodating than the Federal Reserve and the European Central Bank.

The International Monetary Fund (IMF) of Asia states that "as the inflation rates are still lower in Japan, the Bank of Japan (Boj) is very thoughtful in implementing the accommodative monetary policies."

April 26, 2022 - 10:42 AM 256 views

IMF:  The Bank of Japan will be more accommodating than the Federal Reserve and the European Central Bank.

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© IMF: The Bank of Japan will be more accommodating than the Federal Reserve and the European Central Bank.

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The International Monetary Fund (IMF) of Asia states that "as the inflation rates are still lower in Japan, the Bank of Japan (Boj) is very thoughtful in implementing the accommodative monetary policies."

IMF's Gukde Wolf, the Deputy Director of Asa and Pacific, commented as follows:

  • With growth lower than predicted and inflation higher than predicted, the Asian area is facing a stag flationary outlook.
  • The prolonged and widespread lockdowns in China took their toll on the Chinese economy, which led to the high cuts in the Chinese property market.
  • Depending on domestic inflation developments and external pressures, the speed of monetary tightening policies is required in the majority of countries.
  • Despite recent increases, inflation in Japan remains low, allowing the Bank of Japan to be more accommodating than the Fed and the ECB.

  • The low yen currency value has made imports more expensive for Japan, as there is a chance of an increase in exports and it impacts the offsets.

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