"Of course, monetary policy is going to be normalized in the future but until we can see a clear path in the future, I understand the BOJ is going to maintain its current policy," Yasutoshi Nishimura told a panel at the World Economic Forum's annual meeting in Davos.
Nishimura said various government policies had allowed inflation to rise slower than in other countries.
"But from now on, when real investment is made and wages increase and the economy gets going... monetary easing can afford to be stopped in the future. We are of course coming to that phase, nearing that phase," Nishimura added.
The Bank of Japan on Wednesday maintained ultra-low interest rates, including a bond yield cap it was struggling to defend, defying market expectations it would phase out its massive stimulus programme in the wake of rising inflationary pressure.
(Reporting by Yoruk Bahceli; editing by Dhara Ranasinghe)
