Comments from the IMF's Japan Mission Chief crossing

  • fiscal policy, rather than monetary policy, should be first line of defence in battling headwinds to Japan's economy
  • Japan should not put off sales tax hike in October, should increase fiscal spending if risks materialise
  • BOJ should clarify link between inflation and its forward guidance pledging to keep rates very low
  • Banking sector woes are fundamental, not really issues for monetary policy

Yen non responsive to the remarks.