IMF’s Japan Mission Chief: Fiscal policy should be first line of defence in battling headwinds – RTRS

IMF’s Japan Mission Chief crossing the wires over Reuters saying that  fiscal policy, rather than monetary policy, should be the  first line of defence in battling headwinds to japan’s economy:

• Japan should not put off sales tax hike in October, should increase fiscal spending if risks materialise;
• BoJ should clarify link between inflation and its forward guidance pledging to keep rates very low;
• Banking sector woes are fundamental, not really issues for monetary policy.