BOJ’s Suzuki: Haven't decided on fate of pandemic relief programme that expires in March

Dhwani Mehta FXStreet

The Bank of Japan (BOJ) Suzuki said that the central bank hasn’t decided on the fate of the pandemic relief programme that reaches the deadline in March.

Additional comments

Structural problems Japanese financial institutions face have not changed since when I became board member more than four years ago.

Japan's financial system has become somewhat more stable than before thanks to govt, BOJ measures to ease hit from the covid pandemic.

Without change at financial institutions to face structural woes, hard to sustain stability in Japan’s financial system

No change to basic view laid out on the economy, prices in BOJ’s Oct quarterly report.

Spread for Japan corporate bond, CP narrowing quite a bit.

Smaller firms' funding conditions have improved as a whole, but remain severe for some sectors.

Want to scrutinise BOJ’s Dec Tankan in deciding whether to extend the deadline for pandemic-relief programmes.

BOJ’s pandemic-relief programmes were introduced as an emergency step, so need to terminate them at some point in the future.

Market reaction

USD/JPY is off the daily highs, battling 113.00, despite the rebound in the US dollar alongside the Treasury yields.

The spot is currently trading at 113.05, up 0.29% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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