The Bank of Japan (BOJ) is on track to end its COVID-19-relief funding scheme but the central bank is likely to maintain ultra-low rates at the September 21-22 policy meeting, Reuters reports, citing three sources familiar with its thinking.

Key takeaways

"While some firms remain under stress, corporate funding has generally improved."

"Conditions for ending the scheme is falling into place.”

With risks to the economy broadening, the BOJ may also change a portion of its policy guidance that pledges to "scrutinize the impact of the pandemic" and "strive to support corporate funding conditions.”

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