International Monetary Fund No. 2 said that Japan's economic recovery is creating conditions for the Bank of Japan to continue to normalize its policy after maintaining an ultra-loose monetary policy for decades. IMF First Vice President Dan Katz said that Japan is undergoing a “far-reaching long-term transformation,” and the structural reforms initiated by former Prime Minister Shinzo Abe are only now beginning to bear fruit. In an interview in Cape Town on Thursday, Katz said, “The Bank of Japan has begun to get rid of the ultra-low interest rate environment that has continued for nearly 30 years and promote the normalization of monetary policy.” Katz was chief of staff in the US Treasury before joining the IMF last year. He said it is expected that “the Bank of Japan will take all necessary measures to fulfill its mission, that is, to achieve inflation while also supporting economic growth.” When asked what measures the Bank of Japan still needs to take to support the yen, Katz said, “Inflation is still slightly above the target level, so I expect normalization to continue.”

International Monetary Fund No. 2 said that Japan's economic recovery is creating conditions for the Bank of Japan to continue to normalize its policy after maintaining an ultra-loose monetary policy for decades. IMF First Vice President Dan Katz said that Japan is undergoing a “far-reaching long-term transformation,” and the structural reforms initiated by former Prime Minister Shinzo Abe are only now beginning to bear fruit. In an interview in Cape Town on Thursday, Katz said, “The Bank of Japan has begun to get rid of the ultra-low interest rate environment that has continued for nearly 30 years and promote the normalization of monetary policy.” Katz was chief of staff in the US Treasury before joining the IMF last year. He said it is expected that “the Bank of Japan will take all necessary measures to fulfill its mission, that is, to achieve inflation while also supporting economic growth.” When asked what measures the Bank of Japan still needs to take to support the yen, Katz said, “Inflation is still slightly above the target level, so I expect normalization to continue.”