The financial markets have been calmly viewing the Bank of Japan's lifting of its controversial "zero-interest-rate" policy last Friday, BOJ Gov. Masaru Hayami said Tuesday.

But Hayami declined to comment on the BOJ's next possible move to raise rates, saying the central bank will first have to closely watch the impact on the markets.

"Although only two (business) days have passed since the 'zero-interest-rate' policy was lifted, what is certain is that, as you all see, the markets are very calm," Hayami told a regular news conference.

The so-called call market, where banks extend short-term loans to each other, has become very active since Monday, he added.

The zero-interest-rate policy had guided the overnight interbank lending rate to zero. The BOJ Policy Board voted Friday to raise the target rate to about 0.25 percent.

Brushing aside the yen's weakening against the dollar despite the rate hike, he said the currency rate is effectively unchanged, adding there is no reason for the yen to depreciate further.

The yen's weakening is widely attributed to the view that the rate hike will harm Japan's economic recovery. A rise in interest rates in a country normally stimulates its currency to appreciate.

Hayami said the central bank will continue to support the nation's economic recovery by maintaining an easy monetary policy.

Asked how or when the bank will raise rates further, he said, "I don't know yet. It belongs to the future."

Miyazawa relieved

After last week's showdown between the government and the Bank of Japan over the central bank's "zero-interest-rate" policy, Finance Minister Kiichi Miyazawa apparently wants to put it all behind him.

"I think it is already over," Miyazawa told a regular news conference Tuesday morning, referring to the BOJ's decision last Friday to lift the ultraeasy monetary policy.