The International Monetary Fund (IMF) welcomed the Bank of Japan's move to the new principles of monetary policy. Nevertheless, the organization continues to believe that the Bank of Japan will not be able to achieve the inflation target of 2% in the nearest future. Last week, the Bank of Japan following the results of the September meeting and the large-scale review of the monetary policy decided to abandon the monetary base landmark as one of the main targets. Instead, the regulator will begin to target the yield on 10-year government bonds at the current level of about 0%.

 "We consider positive what had happened on September 21 and it is welcome," - said the head of the IMF mission to Japan, Luc Everaert. Review of monetary policy - is "progress, but this does not mean that the inflation target will be achieved much more quickly than otherwise", - Luc added.

Everaert urged the Bank of Japan to continue to refine the monetary policy principles and try to maintain stability in the Japanese government bond market.

Despite its ultra-loose monetary policy adopted in April 2013, Japan fails to achieve higher rates of prices growth. In July 2016, consumer prices in the country fell by the end of the fifth month in a row. According to many economists, the acceleration of inflation to 2% is too ambitious goal.

The head of the Japanese Central Bank Haruhiko Kuroda, speaking in Osaka, said that the Bank of Japan is ready, if necessary, to ease monetary policy with no hesitations. According to him, further reduction in interest rates on deposits, which is already negative, as well as reducing the target of long-term interest rates will make the monetary conditions in the country more challenging.

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