- Expect underlying inflation to gradually accelerate as economy continues to recover
Nothing too notable here.
- BOJ is gradually shrinking the size of its balance sheet, ideal size will be taking into account overseas examples
- Size of Japan's monetary base and balance sheet somewhat too big now, which is why we are slowing bond buying
It's quite a few steps from slowing bond buying to shrinking the balance sheet.
- Expect Japan's real wages and consumption to gradually improve as rise in import costs seen moderating, wage growth expected to stay strong
