New BOJ framework marks progress: IMF

TOKYO • The International Monetary Fund (IMF) said yesterday that a new monetary policy framework adopted by the Bank of Japan (BOJ) marked "progress", but stuck to its view that the central bank will not be able to hit its ambitious 2 per cent inflation goal any time soon.

IMF Japan mission chief Luc Everaert made the remarks after the BOJ last week switched to targeting short- and long-term interest rates and dropped its previous target of increasing base money at an annual pace of 80 trillion yen (S$1 trillion).

With Japan struggling to break free of a long, debilitating phase of deflation despite the ultra-easy monetary policy adopted in April 2013, many economists have said 2 per cent inflation was an overly ambitious goal.

REUTERS

China eases asset rules for overseas investors

BEIJING • Chinese authorities have scrapped guidelines on Qualified Foreign Institutional Investors' mainland asset allocations, according to people familiar with the matter.

The China Securities Regulatory Commission (CSRC) has told market participants that it no longer requires overseas investors to put at least 50 per cent of their assets into stocks, said those people. The regulator may not make a public announcement as the previous limits were not official policy, they said. A CSRC press official declined to comment.

The move does not come as a surprise, said Ms Carol Pang of Zhongtai International Holdings. "Given the various new channels through which they can invest, the old limits would have been difficult to control."

BLOOMBERG