According to the IMF Japan may need further stimulus if the recession worsens, and the BOJ should stand ready to provide further support.
The IMF says fiscal policy should also remain flexible to address further downside risks.
Japan’s economy is seen contracting 6.25% in 2009, in line with earlier forecast.
USD/JPY at 95.65 is pretty much where it was when I walked in this morning. Talk of some buy orders lined up at 95.40/50. Decent supply up at 96.50.
