IMF’s Salgado: Weak yen helps BOJ inflation target while it negatively impacts households

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We believe yen's recent depreciation as reflecting fundamentals, such as expectations on future US-Japan monetary policies

We see both positive, negative effects in yen depreciation on Japan's economy.

Weak yen helps exporters and firms earning profits overseas, facilitates BOJ's achievement of 2%  inflation  target.

Negative side of weak yen is impact on importers, households.

Inflation in the medium-term will remain well below BOJ's target once cost-push factors go away.

Appropriate for the BOJ to maintain monetary easing until inflation is achieved in a stable and durable manner.