The Bank of Japan is far off from raising interest rates, as tightening monetary policy prematurely will put its goal of attaining stable 2% inflation at greater risk, Deputy Gov. Shinichi Uchida said.

Uchida pointed to budding signs that Japanese companies are changing their stance on price and wage hikes. But he said in a recent interview that uncertainty is still high over the inflation outlook as he stressed the need to persist with monetary easing to support the economy.

The BOJ has denied market speculation of a policy change even as the rise in the country's inflation rate has stayed above 2%. The central bank's dovish stance, in contrast with its U.S. and European peers, is behind the yen's recent declines relative to the dollar and euro.