IMF urges BOJ to allow more flexibility in gov’t bond yields

The International Monetary Fund on Friday proposed the Bank of Japan allow for more flexibility in long-term Japanese government bond yields that have been kept at depressed levels amid the “costly” side-effects of prolonged monetary easing.

In its assessment report on Japan’s fiscal and monetary policy released just before Governor Haruhiko Kuroda hands the reins to his successor, the IMF also stressed that accommodative monetary policy is appropriate.

The IMF report, compiled after bilateral consultations with Japan, proposed three options for the BOJ to consider as part of a review of the c...