IMF's Japanese mission chief with some good news for Japan

  • There's a good chance of cutting growth forecasts in next global economic outlook report
  • BOJ should focus on inflation expectations in deciding whether to ease monetary policy rather than underlying weakness in economy
  • Doesn't see the need for BOJ to ease in October, even if it cuts GDP and CPI forecasts, as long as inflation expectations are well anchored
  • Exchange rate is not and has not been a target for Japan
  • It's not clear whether BOJ alone can boost economy
  • Efforts to change Japan's wage dynamics is also critical

Reuters with the comments from the IMF. Looks like a downgrade to forecast is on the cards

Staying in Japan the Nikkei closed down 2.15% at 17792, -390.23 points, and ends the week -7.02%