Atsushi Mizuno, a member of the Bank of Japan Policy Board, downplayed on Thursday the need for the central bank to cut interest rates.
"It's uncertain how much support can be added by a rate cut, given that Japan's economy has become unresponsive to rate changes after borrowing costs were kept low for more than a decade," Mizuno said in a speech in Oita.
Policymakers must consider the side effects of any cut in borrowing costs, he said, adding that domestic monetary policy conditions are "very accommodative."
The economy is in a soft patch that may be "somewhat prolonged," Mizuno said, indicating he may be reluctant to resume proposing higher interest rates anytime soon.
From last July to November, Mizuno, 48, was the lone board member to vote in favor of raising the benchmark rate from 0.5 percent. He dropped the call in December, saying the BOJ should take time to examine whether profits will keep feeding into incomes and consumer spending.