Ex-BOJ’s Sakurai: The central bank is seen extending pandemic-aid scheme this week

The Bank of Japan (BOJ) is likely to decide this week on extending the September deadline for the pandemic-relief programme, the former central bank board member Makoto Sakurai said on Tuesday.

Additional quotes

“BOJ likely to stick to YCC at least until Governor Kuroda’s term ends in April 2023.”

“Too early for BOJ to consider further steps to revitalize JGB market.”

“BOJ must eventually mull ways to unload its huge ETF holdings.”

Market reaction

USD/JPY is holding onto the recent uptick to weekly highs of 110.15 despite a retreat in the US yields and listless dollar.

The spot was last seen trading at 110.10, modestly flat on the day.