IMF’s Georgieva says Japan not facing increased inflationary pressures By Reuters
© Reuters. FILE PHOTO: A man walks past Bank of Japan’s headquarters in Tokyo, Japan, June 17, 2022. REUTERS/Kim Kyung-Hoon/File Photo
WASHINGTON (Reuters) – 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% 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.”