The former director of the Bank of Japan said changes in the yield curve program could be made.
The Bank of Japan (BOJ) has predicted it may adjust its yield curve program at its meeting this month, according to Hideo Hayakawa, the bank’s former director.
“I hope they will make some kind of adjustment in yield curve control this month,” said Hayakawa. “If they don’t, that would be ridiculous.”
Hayakawa, who is also a former BOJ chief economist, said the central bank should raise its inflation forecast for this fiscal year to a realistic level.
Core consumer inflation, excluding food and energy, was 4.3 percent in May, above expectations.
Hayakawa predicted that doubling the trading band allowed for the BOJ’s 10-year bond yield from 0.5 percent on either side of zero is the most likely step. The BOJ’s next rate meeting is scheduled for July 28.