Bank of Japan policy board member Seiji Adachi on Wednesday emphasized the importance of raising interest rates gradually and carefully as the central bank unwinds previous easing measures.

"I believe that the conditions to enter into a process of normalizing monetary policy have already been met," Adachi said in a speech to business leaders in Kagawa prefecture, located in the smallest of Japan's four main islands.

"It will likely make smoother monetary policy normalization possible if the bank raises its policy interest rate gradually, while being careful not to shock the real economy," he said.

Adachi, who is known to favor reflationary policies, said the bank should make any rate increases at "an extremely slow pace" until it reaches its goal of achieving a stable 2% rise in underlying prices.

The BOJ also needs to avoid drastic policy changes which raise the risk of returning to deflation, he added.

The comments came as uncertainties have heightened over the pace of the BOJ's future rate increases.

Economists and investors expect the central bank to maintain its key interest rate at 0.25% at its next meeting at the end of October because it has become concerned over the global economic outlook.

New Prime Minister Shigeru Ishiba has also said Japan isn't ready for an additional rate increase.

Adachi said Wednesday that Japan's inflation outlook still requires careful attention because further corrections in the yen's weakness could pressure consumer inflation lower, especially prices of imported goods.

The yen last stood at 149.05 yen against the dollar, compared with around 162 yen in early July before the bank's previous rate increase.

It is also unclear whether Japanese companies will continue to provide sufficient pay increases next year, given the clouds over the global economy, Adachi said.

Write to Megumi Fujikawa at [email protected]