BOJ set to end COVID-relief scheme, but no change to loose policy

The Bank of Japan is expected to end as scheduled a pandemic-relief funding scheme 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. 21-22, when the board will scrutinise 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 annualised 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.