Ueda: BOJ's inflation forecasts should be quite strong

Bank of Japan Governor Kazuo Ueda said the BOJ’s inflation forecasts need to be quite firm before it changes yield curve policy. The central bank’s inflation forecasts need to be quite firm and close to 2% for next year before it can consider adjusting yield curve control, Bank of Japan Governor Kazuo Ueda said on Monday. “Currently, trend inflation is below 2%, so we should continue monetary easing. But when trend inflation is forecast to reach 2%, the BOJ needs to normalize monetary policy,” Ueda told parliament. Ueda’s comments came ahead of a two-day policy meeting starting on Thursday when the board is set to produce new quarterly growth and inflation forecasts. The BOJ is likely to maintain ultra-easy monetary policy in its first rate review, chaired by Ueda, who took over in April, the sources said.