IMF Spokesperson Says Bank Of Japan Has Taken Important Steps Toward Normalizing Monetary Policy That Will Help Anchor Inflation And Expectations At 2% Target; BOJ Should Continue To Be Data-Driven And Gradually Raise Rates Over Its Policy Horizon In Line With Inflation Forecasts; Japan's Fiscal Policy Should Focus On 'Growth-Friendly' Consolidation To Help Rebuild Fiscal Buffers And Ensure Debt Sustainability; Japan's Economy Continues To Grow, Inflation On Track To Return To 2% Target
Portfolio Pulse from Benzinga Newsdesk
The IMF acknowledges the Bank of Japan's efforts to normalize monetary policy, aiming to stabilize inflation at a 2% target. The BOJ is advised to continue data-driven rate increases. Japan's fiscal policy should focus on growth-friendly consolidation to ensure debt sustainability.

October 03, 2024 | 3:02 pm
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POSITIVE IMPACT
The IMF's positive outlook on Japan's monetary policy normalization and economic growth could positively impact the iShares MSCI Japan ETF (EWJ), as it reflects investor confidence in Japan's economic stability and growth prospects.
The IMF's endorsement of the BOJ's policy steps and Japan's economic growth prospects are likely to enhance investor confidence in Japanese equities, which EWJ tracks. This could lead to a positive short-term impact on EWJ's price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80