The Bank of Japan is expected to maintain its stimulus policy Friday while weighing an extension to its COVID-19 aid program at the end of a big week of central bank decisions.
With the vast majority of economists expect no change in the BOJ’s negative interest rate or its main asset purchases, attention is likely to be on whether the bank might extend or tweak a funding program for businesses affected by COVID-19, which is set to expire in March, or hold off on deciding until later.
Such a move could come this week or in January, according to people familiar with the matter. Most economists don’t anticipate a decision until next month’s policy meeting, given uncertainties over the omicron variant. Some 20% see the BOJ waiting until March.