Citing sources familiar with the matter, Reuters reported on Thursday that the Bank of Japan is discussing phasing out the emergency pandemic loan scheme if coronavirus infections continue to fall.

Sources further noted that there was no consensus within the BoJ whether to extend the March deadline of the scheme.

"The decision on extending the BoJ COVID-19 loan scheme is expected as early as December," Reuters added. "Ending the loan scheme in March would defy market expectations that the BoJ will extend the deadline again."

Market reaction

The USD/JPY pair edged slightly lower on this headline and was last seen losing 0.23% on a daily basis at 114.00.