Clear communication from the Bank of Japan will be even more important as uncertainty remains high amid ongoing Middle East tensions, the International Monetary Fund¡¯s chief liaison for the country said two weeks before the central bank¡¯s next monetary policy decision.
¡°When there¡¯s a huge uncertainty, communication plays a key role in anchoring market expectations,¡± the IMF¡¯s Mission Chief for Japan Rahul Anand said in an interview on Wednesday. The ¡°BOJ has been doing well in terms of communicating the monetary policy, so that will remain even more important,¡± he said.
Anand¡¯s remarks come ahead of the BOJ¡¯s closely watched April 27-28 meeting, with markets still seeing a slim chance of a rate hike. Before tensions in the Middle East escalated, BOJ watchers had largely expected a move in April, but that view has since faded as the conflict drags on. Anand said the IMF does not predict outcomes for specific meetings.
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