IMF supports a firm stance of the head of the Bank of Japan

According to the International Monetary Fund, at present the Bank of Japan is not recommended to even consider policy adjustments to improve the sustainability of yield curve control, because they can be perceived as an attempt to tighten.

Ranil Salgado, head of the IMF mission in Japan, said that any change to the YCC could be seen as a tightening, no matter what the Bank of Japan tries to convey, and therefore this is not the time to take such action.

The comments reinforce Governor Haruhiko Kuroda's firm stance on the continuation of easing policies. The yen hit a 24-year low on Wednesday, thanks to Kuroda's latest statement, which underscored his peace-loving stance. 

The yen reached 146.97 to the dollar after he reiterated his intention to continue easing policies in Washington, where he visited on the sidelines of a meeting of G20 finance ministers and central bankers. The yen has lost more than a fifth of its value against the dollar so far this year, the highest among major currencies.