The shrinking trade balance isn't a bad thing because it's partly a result of strong domestic demand. Given that domestic demand is driving the economy, the rise in oil prices alone isn't enough to derail growth.

The rises in import prices will likely speed up the process of companies' passing on such rises to domestic prices.

The Bank of Japan has already laid out a map on how it will alter its policy framework, and financial markets are factoring that in. Opposition from the government and politicians to the central bank will probably continue at least through the end of March.

Japan's consumer spending is pretty firm, and it's expected to pick up momentum further in the next fiscal year. So far, the growth in consumption hasn't caught up to the pace of economic growth, but we expect it will gradually play a role as a locomotive for economic expansion.

The number is still in line with an overall rising trend.

His comments suggest that the BOJ would not end its policy at the February meeting, but he did not deny the possibility of a policy shift in March or April.