Japan's economy recovering moderately.

Japan seeing early signs of achieving 2% inflation.

There's a chance Japan will see shift in public perception prices and wages won't rise much.

Japan seeing signs of change in corporate wage, price-setting behaviour.

There is sign of change in Japan's trend inflation as rising wages push up inflation expectations.

Inflation is already exceeding BoJ’s 2% target but there is some distance to achieving it stably and in sustainable fashion.

If overseas economies slow sharply, that could weigh on Japan's economy.

Output gap has turned positive, likely to continue expanding gradually.

Real interest rates likely to continue falling, strengthen degree of monetary easing.

BoJ will closely watch market developments to achieve bond market stability with eye on benefits, de-merits of YCC.