IMF’s Furusawa: Premature for BOJ to withdraw stimulus

Mitsuhiro Furusawa, the International Monetary Fund's (IMF) deputy managing director said in an interview conducted on Saturday that Japan's economy still needs support from ultra-loose monetary policy, despite budding signs of recovery, Reuters reported.

Key Points:

"I don't think we've reached that time yet," he said when asked whether the time is ripe for the BOJ to consider withdrawing its monetary stimulus.

"As a whole, it's a good thing that easy monetary policy continues in Japan"

"Considering Japan's fiscal state, it's desirable to gradually raise the tax rate. There's no doubt Japan should pursue fiscal consolidation given the size of its public debt."

"The fact that credit growth is accelerating at a pace exceeding that of GDP is worrying. But Chinese authorities are well aware of this issue, so I think the situation is manageable."