The International Monetary Fund (IMF) said Japan's commitment to allow the yen to move flexibly will help the central bank focus on achieving price stability, warning against growing calls by some analysts to use monetary policy to slow the currency's decline. The IMF's executive board also said further hikes in the Bank of Japan's (BOJ) short-term policy rate should "proceed at a gradual pace and be data-dependent," given balanced risks to inflation and mixed signals in recent data. The board "underscored that Japan's longstanding commitment to a flexible exchange rate regime will help absorb shocks and support ... (full story)