Bank of Japan board members viewed it as "appropriate" to make the yield cap program less rigid in July, as the market environment was calm and expectations were increasing for sustained wage growth, the minutes of their policy meeting showed Wednesday.

At the July 27-28 gathering, BOJ board members said the central bank should be prepared to respond flexibly to both upside and downside risks to inflation, adding that a tweak to the yield curve control program should not be interpreted as a step toward an exit from monetary easing, according to the minutes.

BOJ Gov. Kazuo Ueda said after the policy meeting that the decision was partly to address volatility in currency and other financial markets.