BOJ’s Kuroda: Need to continue with large-scale easing

In addition to previous comments concerning the Bank of Japan’s (BOJ) monetary policy outlook, the BOJ Governor Haruhiko Kuroda offered additional statements to better forecast the Asian central bank’s next move.

Key quotes

If govt were to ramp up fiscal spending, the fiscal, monetary policy mix will have a bigger positive effect on the economy than when fiscal or monetary steps are taken individually.

More issuance may be meaningful to drop in yields.

Need to continue with large-scale easing.

Japan's inflation far from target.

FX implications

The market‘s reaction to the comments has been positive amid the broad risk-on sentiment fuelled by increasing hopes of the US-China trade deal. USD/JPY takes the bids to 108.82 by the press time of pre-European session on Tuesday.