The Bank of Japan is expected to end as scheduled a pandemic-relief funding plan this month and discuss adjustments to a policy guidance that flags the COVID-19 pandemic as the top economic risk, three sources familiar with its thinking say.
A final decision will be made at the BOJ's policy meeting on Sept. 21 and 22, when the board will scrutinize data to ensure Japan's persistently high coronavirus cases do not lead to a sharp drop in economic activity, the sources said.
Japan's economy expanded an annualized 2.2% in April-June, staging a slower-than-expected rebound from a COVID-induced slump as a resurgence in infections, supply constraints and rising raw material costs weigh on consumption and output.