The Bank of Japan is more likely to adjust policy after failing to achieve its inflation goal rather than in response to the current cost-push inflation, according to a former executive director in charge of monetary policy.

"There is a considerable chance that in a year or so the BOJ’s topic of discussion will shift to when the price target can be really achieved” after failing to hit its goal despite global inflation, former director Kazuo Momma said in an interview Thursday. "That could prompt the BOJ to rethink how it should keep stimulus in place while mitigating side effects.”

At a time when Japan’s inflation rate continues to be well past the central bank’s 2% goal, Gov. Haruhiko Kuroda has been tamping down market speculation that any normalization of policy is near by arguing that wage gains are also necessary for the BOJ to change course.