TOKYO : The Bank of Japan (BOJ)’s change of its yield curve control settings was a “sensible step”, an International Monetary Fund official said on Wednesday, a day after one of the world’s most dovish central banks jolted markets with a surprise move.
The BOJ’s move was “sensible step including given concerns about bond market functioning” with uncertainty around the inflation outlook, Ranil Salgado, the fund’s mission chief for Japan, said in a written statement.
“Providing clearer communications on the conditions for adjusting the monetary policy framework would help anchor market expectations and strengthen the credibility” of the BOJ’s commitment to achieve its inflation target, Salgado added.
Source: Reuters