BoJ's Ueda: Judged appropriate to adjust degree of easing

Japan's economy is recovering moderately.

Must pay due attention to financial, FX markets, impact on Japan's economy, prices.

Upside risks to prices require attention.

Long-term yields should be formed in financial markets in principle.

Appropriate to taper JGB buying in predictable manner while ensuring market stability by allowing flexibility.

Will respond nimbly if there's sharp rise in long-term yields by increasing purchases, conducting fixed-rate operations.

Will keep raising rates, adjust degree of easing if current economic, price outlook will be realized.

Views received at bond market group meeting reflected in our tapering plans.

Private consumption remains solid despite inflation impacts seen.

Confirmed that wage hikes becoming widespread.

Rising wages, income will continue to support private consumption.

Some market participants at July meeting expressed concerns about outlook.

Momentum for wage growth is spreading at small and medium companies.

Import prices starting to pick up gain, attention needs to be paid.

Prices are getting to be more affected by foreign exchange swings compared to the past.

Although not especially strong, private consumption is deemed solid.

Judged spring pay negotiations' result firmly reflected, looking at april-may wages data.

Don't believe this rate hike will have significant negative impact on economy.

Will closely share basic view on economy, prices with govt.

Don't have 0.5% policy rate in mind.

In our estimate, size of BoJ balance sheet will be 7-8% smaller in about two years but still bigger than desirable levels in long-term.

Will check impact of rate hikes up until this point when considering additional rate hike.

Don't believe economy, prices will slow down due to additional rate hike.

There are positive aspects of raising rates now to avoid sudden hikes in future.

No change to our view that neutral rate of interest has large uncertainties.

But as of now Japan's rates are far below the uncertain levels of neutral rate.

We have just shifted our stance to use short-term rates as main policy tool as we no longer need massive easing.