BOJ's policy change

former Bank of Japan director said changes could be made to the yield curve program. The Bank of Japan (BOJ) predicted that it could make adjustments to the yield curve program at a meeting this month, according to the bank’s former governor Hideo Hayakawa. “I hope they will make some kind of adjustment to yield curve control this month,” Hayakawa said. “If they don’t, it would be ridiculous.” Hayakawa, who is also a former BOJ chief economist, also said the central bank should raise its inflation forecast for this fiscal year to a realistic level. Core consumer inflation in Japan excluding food and energy was announced at 4.3 percent in May, above expectations. Hayakawa predicted that the most likely step would be to double the trading band the BOJ allows for the 10-year bond yield from 0.5 percent on either side of zero. The BOJ’s next interest rate meeting is scheduled for July 28.