Bank of Japan Governor Ueda Kazuo says the chances of achieving price stability of 2 percent inflation are rising. The figure has long been touted by the bank as a precondition for changes to its monetary policy.

"The possibility of realizing the 2 percent inflation target is rising little by little," Ueda told lawmakers on Thursday.

Ueda also suggested the bank could decide to end its negative interest rate policy at its March meeting, as has been widely speculated.

"If the sustainable and stable realization of the price target is in sight, the BOJ will consider revising its large-scale monetary easing policies, including the negative interest rate policy and the framework of the Yield Curve Control," he said.

Other BOJ policymakers expressed optimism that there will soon be an environment where wage hikes keep pace with price increases.