BOJ members saw need to tweak yield cap amid inflation risks

Bank of Japan board members saw the need to make its yield cap program more flexible to prepare for the risk of elevated inflation and long-term government bond yields, with one member saying that its 2 percent inflation target has “clearly come in sight,” a summary of opinions showed Monday.

Policy Board members said at its July 27-28 meeting that tweaking the central bank’s yield curve control program, which keeps borrowing costs extremely low, is necessary to ensure that monetary easing can remain in place while addressing its negative side effects.

The summary of opinions also underscored ...