Need to pay attention to whether inflation triggered by yen depreciation may raise inflation expectationsThe risk there is that it may also raise underlying inflationBOJ will continue to raise policy rate in response to economic, price, financial developmentsJapan has clearly entered into inflationary phaseWhat is vital now is to ensure that underlying inflation does not exceed 2%, managed by appropriate policy settingJudged that the situation did not warrant a hasty decision to raise interest rates during April meetingSurge in fuel prices may turn out to be a temporary shockWhat is of concern is that it could further accelerate Japan's already mounting distribution costsHigher distribution costs could contribute to food price hikes, resulting in the shock being more enduringImpact of the energy shock from the war on Japan's economy could be more serious than in the 1970sThat is a risk that warrants attentionThere's definitely some hawkish elements in there, with Masu also pressing the issue in saying that "negative real rates should be addressed as soon as possible" given that he views Japan to be no longer in a deflationary cycle. But when push comes to shove, he defended their decision to not move in April in saying that further consideration is needed in raising interest rates when they are close to the neutral level. Ugh.It is quite a typical response from BOJ policymakers from time to time. They will go as far as trying to convey the message that they are ready to do what it takes to hike rates again next. However, they will then step back in committing or pre-committing to anything while reaffirming that it is also prudent to be patient.That was the same kind of thing that led to the rushed rate hike in December last year, when they had ample opportunity to deliver one in the months before. This article was written by Justin Low at investinglive.com.