BOJ reportedly considering to phase out pandemic support if COVID-19 infections continue to fall

Author: Justin Low | Category: Central Banks

Reuters reports, citing sources familiar with the matter

The report says that the BOJ is discussing phasing out a COVID-19 loan programme, which is due to expire in March next year, if infections in the country continue to decline and as the economy picks itself back up from the depths of the pandemic.

Policymakers are said to not yet reach a consensus on the matter though, adding that discussions are preliminary and any decision is unlikely to come before December.

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One of the sources said that:

"Excluding some sectors, corporate funding conditions have generally improved and the need for immediate liquidity support is fading. What was intended as an emergency measure cannot last forever."
That's certainly fair enough but regardless, I don't see the need for the BOJ to rushed into a decision on this. It's not like they're going to be tightening policy any time soon.

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