More from IMF’s Lipton: “If euro weakens as by-product it would be temporary”

• Says Japan in mild inflation but too soon to declare victory over deflation, sees risks it could return
• IMF’s main concern on Japan is if ‘Abenomics’ 3rd arrow will be ‘fired forcefully’ to raise potential growth
• Low inflation risks being entrenched in Europe the way it became entrenched in Japan
• ECB needs to take whatever steps necessary to fulfil mandate and achieve inflation target
• Very important that ECB actions focus on escaping low inflation trap, if euro weakens as by-product it would be temporary

• BOJ present policy stance appropriate, no need to prepare exit or ease more forcefully
• Japan’s currency and c/a balance broadly in line with medium term fundamentals
• No change in IMF view that Japan sales tax should be raised to 15 pct in medium term to fix public finances

Headlines via Reuters