The Bank of Japan is likely to start phasing out extraordinary measures such as yield-curve control within months of a new governor taking the helm in April, according to a former executive director in charge of monetary policy during the pandemic.

"It’s more likely than not that the BOJ will take steps within the first six months of a new governorship,” Eiji Maeda, the former director, said in an interview on Tuesday. "Still, even if YCC and the negative interest rate come to an end, the bank will probably continue with monetary easing” to keep rates low, he added.

Maeda, also a former BOJ chief economist, said Japan is on track to break away from an entrenched deflationary mindset as it moves away from being an economy of zero inflation. That gives the BOJ scope to end its extreme stimulus measures, he said.