Speaking at a news conference after the BOJ's major policy change, Governor Ueda Kazuo stressed that he is not thinking of sudden rate hikes.

He said the central bank will keep short-term interest rates as a key policy measure, and appropriately manage monetary policies according to the economic, price and financial situation. He added that, "Based on the current economic and price outlook, we believe that easing the financial environment will continue for now."

Ueda also cited the bank's survey of small and midsize companies as behind the policy decision, as well as the pay raises of the spring wage negotiations.

More than half of the survey respondents said they are planning to raise wages.