In rare straightforward remarks on Japan's monetary policy, Prime Minister Yoshiro Mori on Friday expressed hope that the Bank of Japan will maintain its "zero-interest-rate" policy.

Pointing out that the nation's economy is not yet fully on a recovery track, Mori said: "It is not a matter of to what extent (the BOJ) will raise the rate. It (a rate hike) will affect stock prices and currency rates in many ways."

"I hope that the BOJ's senior executives will make an appropriate decision," Mori said in an interview with reporters.

The remarks came ahead of Monday's closely watched meeting of the BOJ's policy making panel.

There has been speculation the BOJ's Policy Board may lift the zero-rate policy at the meeting.

Under the policy, the central bank has been guiding the key unsecured overnight call money rate to close to zero since February last year.

Although the economy showed signs of recovery, private consumption is still low and financial conditions of medium-size and small firms have yet to improve, Mori said.

Concerning the Group of Eight summit in Okinawa next week, Mori said he will announce a plan during the international conference to provide some 15 billion yen as official development assistance in the next five years to further promote information and technology in developing countries.

"I would like to actively promote information and technology in the use of ODA (among developing nations)," Mori said.

He will also ask G8 leaders to make efforts to improve communications infrastructure and provide training in advanced information equipment, Mori said.

He will take up issues on indebted countries and is hoping for an "active discussion," he said.