Reuters reported that the Bank of Japan must continue examining how a future exit from ultra-low interest rates could affect financial markets, one of its board members was quoted as saying in a summary of opinions at the October policy meeting.

''While there is no need to immediately tweak monetary policy, the central bank must pay attention to the side-effects of prolonged easing, according to another opinion quoted in the summary released on Tuesday.''

Key notes

Japan's inflation likely to remain fairly high as there are signs service prices starting to rise.
    
Consumer inflation likely to slow back below 2% next fiscal year due to impact of slowing global growth.
    
Companies maybe shifting away from their business practices that were based on the assumption prices won't rise much.
    
Cannot rule out chance prices will sharply overshoot forecasts.
    
Sustained, steady wage gains crucial for japan to achieve BoJ's price target.
    
Inflation may overshoot expectations but not fully convinced such price rises would be sustainable.
    
There are signs effect of BoJ's monetary easing heightening as long-term inflation expectations heighten moderately, push down real interest rates.
    
Rise in nominal wages crucial to stably achieve BoJ's 2% price target.
    
Must be vigilant to impact of tightening of global financial conditions.
    
Forex levels are determined by fundamentals.
    
No need to tweak monetary policy immediately but must be mindful of side-effects of current policy.
    
Must continue checking how future exit from BoJ's easy policy coud affect markets, whether market players have sufficient buffers.