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Ex-BOJ’s Maeda: Central bank may start debating from around 2023 ways to phase out extraordinary stimulus

The Bank of Japan (BOJ) may start debating from around 2023 ways to phase out extraordinary stimulus, including by ditching negative rates, former central bank executive Eiji Maeda said on Thursday.

Additional quotes

“BOJ could buy green bonds in the future, though not any time soon.”

“BOJ may raise the short-term rate to around 0-0.5% but such move will be withdrawal of extraordinary stimulus, not beginning of rate-hike cycle.”

“BOJ likely won't abandon 0% cap on long-term rate even if it were to hike short-term rate target.”

Market reaction

USD/JPY is off the two-month highs of 110.82, now trading at 110.66, almost unchanged on the day.

Author

Dhwani Mehta

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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