IMF’s Furusawa: Limits to how much BOJ can deepen minus rates

By FXStreet Comments from IMF Deputy Managing Director Furusawa are crossing the wires, via Reuters, noting that BOJ’s negative rate policy is positive for the economy but there are limits to how much it can deepen minus rates.

Headlines

Don’t see recent yen rises as deviating sharply from IMF’s assessment that yen moves are ‘broadly in line with fundamentals’

There is consensus among nations that authorities can take necessary action vs disorderly FX moves, when asked if Japan has room to conduct yen-selling intervention

BOJ must maintain ultra-loose policy but monetary policy alone can’t solve economic woes

G20 warning against competitive devaluations won’t serve as constraint for additional BOJ easing

Japan should deploy fiscal stimulus if it proceeds with next year’s scheduled sales tax hike
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Source:: FX Street