The Bank of Japan will cut its growth and inflation outlook for this fiscal year at a rate review next week, but only slightly tweak its projections for next year, sources said, possibly tempering expectations that the central bank will soon ease monetary policy further.

By not straying far from its current projections for next year, the BOJ can maintain that it is still broadly on course to meet its inflation goal of 2 percent next year without needing to step up its massive asset purchase program, people with direct knowledge of the matter said.

Critics say the program has been only marginally effective and distorts the bond market, and the BOJ board itself has not been unreservedly behind it.