UPDATE 1-BOJ to heighten scrutiny on rising prices, yields at policy meeting

The Bank of Japan is expected to keep policy unchanged on Friday but will likely consider if tweaks to ultra-loose monetary settings need to be made as bond yields rise and inflationary pressures persist. Markets are focusing on comments from Governor Kazuo Ueda's briefing, to be held after the bank's two-day policy meeting, for clues on how soon the bank could phase out the massive stimulus programme of his predecessor.