Bank of Japan Likely to Extend Relief Program

The Bank of Japan (BoJ) is holding a two-day meeting that will conclude on Friday, and it is expected that the central bank will extend the September deadline for the pandemic relief program.

The expectation was made by former BoJ board member, Makoto Sakurai, who told Reuters on Monday that it is too early to revitalize the Japanese government bond (JGB) market with the BoJ’s huge impact.

In March, the BOJ said it would allow the 10-year JGB yields to move 50 basis points around the 0% target, in an effort to support trading in the market, which continued to fall to its lowest level in about 20 years in May.