BoJ Governor Ueda (post-policy presser) says April price behaviour is a factor to mull a rate hike. The impact of any sales tax abolition would be hard to gauge.

• Hearings suggest that wages are impacting prices more than previously.
• Not necessarily waiting for data on the impact of the December hike.
• Difficult to quantify the neutral rate.

Fiscal

• Important for the government to secure market confidence, via a commitment to fiscal health.