Bank of Japan Governor Kazuo Ueda said he told new Prime Minister Shigeru Ishiba in a meeting on Wednesday that the central bank was supporting Japan's economy and will move cautiously in deciding whether to raise interest rates further.

The Bank of Japan should weigh any additional interest-rate increases carefully in order to avoid the risk of cooling the economy too much, the country’s new economics minister said.

Japan’s new government reached out to the central bank for a second straight day in a show of unity as market jitters linger over the course of the nation’s economic policy.

Prime Minister Shigeru Ishiba said Japan is not in an environment for an additional rate increase, in an apparent effort to shake off his reputation as a monetary hawk, after a meeting with Bank of Japan Governor Kazuo Ueda on Wednesday.

Japan's central bank has scope to raise interest rates further but must move cautiously and slowly to avoid hurting the economy, a dovish policymaker said ..