IMF staff report: Coronavirus poses risk to Japan's economy. Critical of BOJ inflation stubbornness

Author: Greg Michalowski | Category: News

IMF staff report on impact of coronavirus and Bank of Japan policy objectives

  • Spread of coronavirus poses risk to Japan's economy
  • If prolonged and widespread, virus likely to affect Japan's tourism, retail trade and investment
  • Urges Bank of Japan to conduct comprehensive review of its policy objectives
  • Bank of Japan should redefine its 2% inflation target as a long-term goal, set range around target
  • Bank of Japan should clarify that objectives other than inflation, including financial stability, also matter for monetary policy
  • Bank of Japan's over optimism hitting 2% inflation target has hurt its credibility

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