International Monetary Fund's chief economist Pierre-Olivier Gourinchas spoke with Reuters.
- Too early for BOJ to tighten monetary policy as re-anchoring inflation expectations to its 2% target will take time
- 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 BOJ to first move away from control of long-term yield, then raise short-term rate when need arises to tighten policy
I'm pretty sure Bank of Japan Governor Ueda doesn't need any advice at all from the IMF.