TOKYO, May 14 Reuters The International Monetary Fund IMF said Japan39;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 currency39;s decline.

The IMF39;s executive board also said further hikes in the Bank of Japan39;s BOJ shortterm policy rate should proceed at a gradual pace and be datadependent, given balanced risks to inflation and mixed signals in recent data.

The board underscored that Japan39;s longstanding commitment to a flexible exchange rate regime will help absorb shocks and support monetary policy39;s focus on price stability, the IMF said in a statement released by its executive board in Washington on Monday.

By purchasing government bonds flexibly in accordance to market developments, the BOJ can mitigate excessive shifts in yields that could hurt Japan39;s financial system during its historical transition from ultraloose monetary policy, the IMF said.

The recommendations come as Japan struggles to combat persistent yen falls that have become a headache for policymakers, as the weaker currency hurts consumption and the broader economy by inflating the cost of raw material imports.

Japan39;s Ministry of Finance is suspected to have intervened in the currency market at the end of April through early May to slow the yen39;s declines, which accelerated in part due to market expectations the BOJ will be in no rush to…