Inflation forces BOJ to act earlier

June 12 (Reuters) – Not everyone thinks the Bank of Japan is unlikely to raise interest rates this summer, and one of the factors that could prompt Bank of Japan Governor Kazuo Ueda to act sooner is inflation data that continues to beat expectations. Economists already expect the BOJ to raise its inflation forecast for July given continued strength in prices. That could provide evidence for an initial policy shift next month before a more significant one. They believe that if Ueda chooses to act early, the most likely move is to adjust or give up yield control. Hirofumi Suzuki, chief currency strategist at Sumitomo Mitsui Banking Corp., said there was a general consensus that rate adjustments would be carried out without warning. The BOJ could even raise the yield cap again this month, he said. The BOJ emphasized that it will carefully adjust policy if necessary, so it has not completely ruled out this possibility.