BoJ's Ueda says the domestic economy is picking up, driver of the economic recovery is likely to shift from pent up demand to rising income/expenditure. Adds, it is appropriate to take time to decide on adjustments to monetary easing toward a future exit.

• On CPI and the expectation that it will accelerate again moderately, albeit with fluctuations, Ueda adds that "However, the uncertainties surrounding this outlook are extremely high."
• "The cost of impeding the nascent developments toward achieving the 2 percent price stability target, which are finally in sight, by making hasty policy changes would likely be extremely high."
• "While there is an opposite risk that inflation will remain above 2 percent if a change in policy falls behind the curve, the cost of waiting for underlying inflation to rise until it can be judged that 2 percent inflation has fully taken hold is not as large as the cost of making hasty policy changes. In this sense, it is appropriate to take time to decide on adjustments to monetary easing toward a future exit."
• "Since cost-push inflation puts downward pressure on real income and corporate profits, it places a burden on households and firms. However, tightening monetary policy in an attempt to rein in such inflation will worsen the economic and employment situations."
• Won't hesitate to take additional easing steps if needed.
• Will maintain massive stimulus with YCC.

via BoJ