IMF says is sees the prospect and potential for more flexibility in BOJ YCC policy

The IMF often times doesn't know its *** from its elbow.

Still, FWIW, IMF Japan Mission Chief Salgado:

• We do see prospect, potential of more flexibility at long end of curve under the BOJ's YCC policy

• there are two-sided risks to Japan's inflation, including upward surprises in the shunto wage negotiations

• downside risks to Japan's inflation outlook are related to global environment, financial shocks that raise prospects of global recession

• our advice to the BOJ is to consider allowing for greater flexibility at longer-end yields, allow longer end of curve to be more determined by market forces

I suspect the BOJ is not looking for advice from the IMF.

incoming Bank of Japan Governor Ueda