IMF predicts Japan to uphold flexible exchange rate supporting its monetary policy; Asian central banks may ease policies in response to moderating inflation.

The International Monetary Fund (IMF) has reported that Japan is dedicated to flexible exchange rates and the Bank of Japan's monetary policy. Moreover, the IMF believes that central banks in Asia may be able to ease monetary policies later this year as inflation reduces, with the inflation rate in the region falling from 3.8% in 2022 to 2.6% in 2023. Direct discussions concerning exchange rate policies and flexible exchange rates acting as shock absorbers have been held between IMF officials and Japanese authorities.

January 30, 2024
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