- Bank of Japan officials, including Governor Haruhiko Kuroda, have repeatedly said they will extend the pandemic-relief programme if needed to underpin a fragile recovery as the country struggles with a resurgence in infections.
- The BOJ may decide on an extension as early as its rate review in June
Daiwa in Tokyo add, conveying June is perhaps too soon but there is a reason for it:
- “Ideally, the BOJ would spend more time scrutinising whether some tweaks are needed in extending the steps in response to changes in how the pandemic is affecting corporate funding,
- But if the BOJ wants to move quickly to show it’s working hand in hand with the government to combat the pandemic, it will probably extend the steps in June”