Governor Haruhiko Kuroda has said that the Bank of Japan is not considering exiting ultra-loose monetary policy and will not do so during the remainder of his term, which runs through April 2023.

"There's no chance we'll debate an exit policy as long as our current price prediction lives," Kuroda said in an interview. "We're not debating whether or not to exit. Given the pricing developments in Japan, it would be inappropriate."

While rising fuel costs are pushing up wholesale prices, the probability of Japan's consumer inflation speeding up is "very small," according to Kuroda, because households have yet to adjust to price increases.

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"The key would be wage growth," he added, saying that steady wage rises are crucial for consumer inflation to sustainably move towards the Bank of Japan's 2% target.

"Japan's economic recovery is slower than that of the US and Europe, and consumer inflation is only 0.5%," Kuroda said. "As a result, there's no need to reduce monetary stimulus or turn to tighter policy. It's highly unlikely that this will happen" he added.

On Thursday, the benchmark 10-year Japanese government bond (JGB) yield hit a six-year high of 0.225%, creeping closer to the implicit 0.25% cap set by the BoJ around its 0% target, amid speculation that the BoJ could follow in the footsteps of other central banks and begin to taper its massive monetary stimulus.