Sanae Takaichi, Japan's Minister for Economic Security and a leading contender in the ruling Liberal Democratic Party's leadership race, said on Saturday that the Bank of Japan (BOJ) should maintain its ultra-low interest rates to support the fragile economic recovery.

Asked about the BOJ's plans for interest rate hikes this year, she said at a press conference that gathered the nine candidates vying for the party's leadership, "Frankly, it's too early." She added, "Interest rates should be kept low."

The BOJ abandoned its negative interest rates in March and raised the short-term interest rate to 0.25% in July, as the central bank sees the economy making progress toward sustainably achieving its 2% inflation target.