TOKYO—The Bank of Japan should consider further steps to make its ultra-easy monetary policy more sustainable, such as steepening the yield curve by targeting a shorter maturity than the current 10-year yield, an International Monetary Fund executive said.
Such a move would be on top of steps the central bank took in March last year to mitigate the side-effects of prolonged easing, such as allowing 10-year yields to move more widely around its 0 percent target.
