Bank of Japan board members saw the need to make its yield cap program more flexible to prepare for the risk of elevated inflation and long-term government bond yields, with one member saying that its 2 percent inflation target has "clearly come in sight," a summary of opinions show.
The Bank of Japan's decision on July 28 to make its yield cap program more flexible may provide the central bank with some room to see if price dynamics are indeed changing and wage growth is continuing to accelerate the recipe for finally attaining its 2 percent inflation goal.
The Bank of Japan decided on July 28 to make its controversial yield curve control program less rigid, allowing 10-year Japanese government bond yields to rise above its 0.5 percent cap.
A Bank of Japan policymaker said that the central bank should review its yield cap program "at an early stage," noting its high costs, a summary of opinions from its June policy meeting showed on June 26.