Thursday , 7 November 2024
Home Forex Senior IMF official warns of tit-for-tat tariffs, China property sector, yen intervention
Forex

Senior IMF official warns of tit-for-tat tariffs, China property sector, yen intervention

Senior IMF official:

  • China’s property sector problems have not been addressed in a comprehensive way, leading to consumer confidence plummeting.
  • The risk of deflation in China has increased, which hurts Asian countries that must compete with China’s falling export prices.
  • Any kind of political uncertainty has a bearing on sentiment and economic activity, when asked about Japan’s general election outcome.
  • Since the Bank of Japan is normalizing monetary policy and interest rates are rising, it’s even more important for Japan to start fiscal consolidation in earnest.
  • Any new initiative or fiscal support that Japan deploys should be targeted and funded within the budget, instead of by issuing more debt.
  • Any further rate hikes by the Bank of Japan should be gradual and data-dependent.
  • Japan is fully committed to a flexible exchange rate regime, when asked about authorities’ recent remarks describing yen moves as ‘one-sided and sharp.’

***

Despite it being the IMF its hard to argue with any of those points!

This article was written by Eamonn Sheridan at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Japan yen intervention official closely watching market moves with high sense of urgency

Atsushi Mimura is Japan's vice finance minister for international affairs, AKA 'top...

Japan September wages data – real wages -0.1% y/y

Japan wages data shows that 'real' wages, ie after adjustment for inflating...

USD/CAD extends upside to near 1.3950, Fed rate decision in focus

The USD/CAD pair extends the rally to near 1.3940 during the early...

GBP/USD backslides in broad-market Greenback rally

GBP/USD tumbled back below the 1.2900 handle on Wednesday as markets splurged...