Comments by a Bank of Japan policymaker are weighing on speculation about the possibility of a third rate hike in less than a year. Nakamura Toyoaki says Japan's economy is recovering moderately, but it is showing some weakness.

The central bank has said that continuing wage hikes will be a key factor in discussions about lifting rates. Nakamura said investment at small and medium-size firms is rebounding slowly, and that's putting future pay raises in doubt.

He also pointed to increasingly thrifty consumers, as well as economic slowdowns in China and other countries.

Nakamura said now is the right time for the central bank to carefully tweak its monetary easing program, and that any action will depend on the progress in Japan's economic recovery.

The remarks come amid speculation that the BOJ might announce another rate hike at its policy meeting in December or January.

Nakamura was one of the two policy board members who voted against a rate hike when the central bank raised it in July.