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.
