The Bank of Japan's Chief Economist Eiji Maeda expects that Japan's economy "to move from recovery to an expansionary phase" this fiscal year due to improvements in domestic demand, exports and falling oil prices.

Maeda pointed out that the country is near full employment, which will put upward pressure on wages.

The Bank of Japan's chief economist noted that the central bank will adjust its monetary policy if needed. He added that there is no need adjustments as inflation expectations remain firm.