Bank of Japan Governor Kazuo Ueda on Wednesday took in stride recent rises in bond yields, saying they were a natural reflection of market expectations of future interest rate hikes by the central bank.

Kazuo Momma, a former executive director in charge of monetary policy, says the central bank is likely to move roughly every six months to maintain expectations.

The Bank of Japan said it will increase scrutiny into how lenders are estimating the impact of rising interest rates on their profits in next fiscal year's on-site inspections, as some were found not adequately grasping the risk of deposit outflows.