A senior IMF official (not a kid on work experience) with the remarks:
- yen’s recent declines are driven by fundamentals, there is no reason to change Japan’s economic policy
- no need to change BOJ’s accommodative monetary policy
The official was asked if intervention to buy the yen would be justified, says no:
- we do not see disorderly market conditions in the FX market
Sheesh, anyone with a brain cell has been pointing to the monetary policy divergence between the BOJ (super-easy) and Federal Reserve (tightening up) as a key driver. The IMF have caught on now.
Interestingly, this from Morgan Stanley earlier in the week points to terms of trade also: