IMF on Japan, use fiscal policy before monetary policy, to counter economy headwinds

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.