The government and Bank of Japan (BOJ) will cooperate to ensure there is no deflation in the economy, said Japanese Economy Minister Yasutoshi Nishimura on Friday.
He said that the policies to prevent coronavirus spread are curbing demand, adding that there are obviously various economic effects including prices.
This comes after Tokyo area CPI for April came in at 0.2% YoY vs. 0.4% expected and 0.4% expected.
USD/JPY fades the spike
USD/JPY fades an early spike to 107.41, as risk-aversion has gripped Asia amid fresh US tariffs threats on China and the disappointing US and Japanese macro data.