Bank of Japan officials see little need to adjust its yield curve control program at a policy meeting next week given improvement in the functioning of the bond market and the smooth shape of the yield curve, according to sources.
The officials also recognize that inflation is running stronger than they expected, a factor that raises the chance of the BOJ upgrading its inflation forecast in a quarterly economic outlook report in July, according to the people.
Still, officials aren’t confident enough to say achievement of the BOJ’s 2% price target is in sight, pointing to the need for continued monetary stimulus, the people said.