The Bank of Japan (BOJ) should be ready to expand monetary stimulus and intervention is an option if the yen moves excessively, an IMF official said in Tokyo.
"Intervention could be an option," if yen moves are too large, Naoyuki Shinohara, a deputy managing director, said yesterday. "Japan's economy has many downside risks, so depending on the circumstances, the BOJ should always be ready to expand quantitative easing."
The central bank kept its asset-buying fund at ￥20 trillion (US$260 billion) and its credit-lending program at ￥35 trillion on Jan. 24 while cutting its forecast for the nation's growth. A yen near post World War II highs against the US dollar is eroding exporters' profits just as faltering global growth undermines demand, with Panasonic Corp yesterday forecasting a record loss for the 12 months ending March. (Taipei Times)
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