Reuters on comments from a senior International Monetary Fund (IMF) official:

  • Bank of Japan likely to push back timing of further rate hikes if IMF’s reference scenario materializes
  • Japan’s inflation likely to converge to BOJ’s target sometime in 2027 rather than in 2026, as initially expected
  • Balance of risks is to the downside for Japan’s economic growth, inflation
  • Yen remains safe-haven currency given strength, predictability and stability of Japan’s economy
  • IMF supports Japan’s commitment to flexible foreign exchange regime, which helps absorb shocks
Source: Forex Live