Will scrutinize effect of govt's policy on inflation outlook once it is announced.

We haven't had large upgrade to inflation outlook based on what we call '2nd force', or demand-driven factors.

Important for currencies to move stably reflecting fundamentals.

Possibility remains low for monetary policy to fall behind the curve.

Much of the cpi forecast revision is due to longer-than-expected rise in commodity prices.

Big volality in forex could have negative impact on economy.

Closely working with government, monitoring situation on forex.

We can contain speculative moves in market with flexible market operations.

We will allow more flexibility when it comes to non-speculative market moves based on fundamentals.

As in July, today's decision to make YCC flexible was partly aimed at preventing financial market volatility, including FX volatility.

Practically speaking, it would be difficult for boj staff to ascertain whether day-to-day rise in long-term yield is speculative.