The Bank of Japan is discussing phasing out a COVID-19 loan program if infections in the country continue to dwindle, sources have said, potentially setting the bank up to exit a key crisis-mode policy sooner than investors expect.
Markets have been anticipating a third extension of the scheme, set to expire in March. Policymakers have not reached a consensus as discussions are preliminary, said three people familiar with the central bank's thinking, and a decision is unlikely before December.
But with corporate funding strains easing, infections falling sharply and the world's third-biggest economy reopening, some policymakers are contemplating ending the emergency program in March, the sources said.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.