Eiji Maeda, a former Bank of Japan (BoJ) Executive Director in charge of monetary policy during the pandemic, said in a Bloomberg interview on Tuesday, “it’s more likely than not that the BOJ will take steps within the first six months of a new governorship.”

Additional quotes

“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.

“Mild inflation is starting to take root.”

“An economic cycle where inflation pushes up wages may be starting to emerge.”

Market reaction

USD/JPY was last seen trading at 130.52, adding 0.29% on the day.