IMF warns of upside risk to Japan inflation, urges BOJ to start preparing for tightening

<p>The International Monetary Fund's chief economist Pierre-Olivier Gourinchas spoke on Tuesday, at a news conference held after the release of the IMF's updated World Economic Outlook report.</p><ul><li>"Right now, the risk is probably on the upside, that maybe inflation pressures will continue to remain above the target"</li><li>"Our advice for Japanese authorities there is that right now, monetary policy can remain accommodative, but it needs to prepare itself for the need to maybe start hiking"</li><li>encouraging the BoJ to "be a bit more flexible and maybe move away from the yield-curve control that it has now."
</li></ul><p>—</p><p>The Bank of Japan statement is due on Friday. Previews:</p><ul><li><a href="https://www.forexlive.com/news/credit-agricole-boj-unlikely-to-adjust-ycc-temporary-reprieve-for-jpy-20230725/" target="_blank" rel="follow" data-article-link="true">Credit Agricole: BOJ unlikely to adjust YCC, temporary reprieve for JPY</a></li><li><a href="https://www.forexlive.com/centralbank/boj-is-likely-to-consider-raising-their-consumer-inflation-projection-to-around-25-20230724/" target="_blank" rel="follow" data-article-link="true">BOJ is likely to consider raising their consumer inflation projection to around 2.5%</a></li><li><a href="https://www.forexlive.com/centralbank/commerzbanks-two-factors-thatll-prompt-a-weaker-yen-if-the-boj-holds-steady-policy-20230724/" target="_blank" rel="follow" data-article-link="true">Commerzbank's two factors that'll prompt a weaker yen if the BOJ holds steady policy</a></li><li><a href="https://www.forexlive.com/centralbank/boj-meet-this-week-mufg-still-expect-ycc-tweak-but-their-confidence-ebbing-yen-scenario-20230724/" target="_blank" rel="follow" data-article-link="true">BOJ meet this week. MUFG still expect YCC tweak but their confidence ebbing. Yen scenario.</a></li></ul><p>Bank of Japan Governor Ueda </p>

This article was written by Eamonn Sheridan at www.forexlive.com.