IMF's Japanese mission chief with some good news for Japan
- There's a good chance of cutting growth forecasts in next global economic outlook report
- BOJ should focus on inflation expectations in deciding whether to ease monetary policy rather than underlying weakness in economy
- Doesn't see the need for BOJ to ease in October, even if it cuts GDP and CPI forecasts, as long as inflation expectations are well anchored
- Exchange rate is not and has not been a target for Japan
- It's not clear whether BOJ alone can boost economy
- Efforts to change Japan's wage dynamics is also critical
Reuters with the comments from the IMF. Looks like a downgrade to forecast is on the cards
Staying in Japan the Nikkei closed down 2.15% at 17792, -390.23 points, and ends the week -7.02%