Prime Minister Ishibu and the BoJ share the view that exiting deflation is a priority

Japan’s newly appointed Economy Minister Ryosei Akazawa said on Friday that Prime Minister Shigeru Ishiba and the BoJ share the view that exiting deflation is Japan’s top priority.

Additional quotes

No change in interpretation of the government-BoJ agreement targeting 2% inflation.

It will communicate with the markets, the dialogue with the markets is important.

The timing of the change in monetary policy is important, it must align with Japan’s broader goal of exiting deflation.

Market reaction

At the time of writing, USD/JPY broke off its renewed decline, trading at around 146.65, still down 0.18% on the day.