Japan's economy has recovered moderately, although some weakness has been seen in part. It is likely to keep growing at a pace above its potential growth rate, as a virtuous cycle from income to spending gradually intensifies. • Japan's real economy has improved moderately, and prices have been somewhat higher than expected. • The wage growth rate agreed in this year's annual spring labor-management wage negotiations so far has been somewhat higher than that agreed last year. This indicates that the nominal wage increase consistent with the price stability target of 2 percent is becoming firmly established. • In this year's annual spring labor-management wage negotiations, the increase over last year in the wage growth rate of small and medium-sized firms has been greater than the increase for large firms. As has been the case with the progress in cost pass-through since 2022, large firms have taken the lead in wage hikes, and small and medium-sized firms have been following them. post: BOJ Summary of Opinions: One member: wage increases in spring wage negotiations slightly surpassing previous year, nominal wages increasing in line with BOJ's inflation target achievement post: One member believes it is best to maintain the current policy steady for the time being. post: BOJ Summary of Opinions: One member: BOJ will continue to hike rates if economy, prices move in line with forecast but should not have preset idea on specific policy management post: BOJ Summary of Opinions: One member believes underlying inflation highly likely to steadily accelerate toward 2% due to consistent price increases, wage discussion result.