IMF Executive Board statement on consultation with Japan:
- Further hikes in Japan's short-term policy rate should proceed at a gradual pace and be data-dependent
- Japan's long-standing commitment to flexible exchange rate regime will help absorb shocks, support monetary policy's focus on price stability
- BOJ's state-contingent purchases of JGBs will help mitigate excessive shifts in yields that could undermine financial stability during policy transition
- Clear, effective communication strategy by BOJ that continues to underscore factors behind pace of rate hike will be key
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USD/JPY update, moving sideways circa 156.20 ish:
