Japan's Long-Term Transformation Gives BOJ Room for Further Normalization

The Bank of Japan has been maintaining an aggressively loose monetary policy for decades, but according to Dan Katz, the International Monetary Fund's No. 2 official, this is about to change.

Katz notes that the country is undergoing a 'very significant long-term transformation,' with structural reforms launched under former Prime Minister Shinzo Abe only now beginning to bear fruit.

This transformation is giving the Bank of Japan room to continue normalizing monetary policy, Katz said.