The Bank of Japan will adjust interest rates gradually while ensuring its policy actions remain supportive of the domestic economy and that growth remains sustainable, BoJ governor Toshihiko Fukui said Sunday. The central bank governor made the comments at a press conference held at the end of the two-day meeting of the Group of 20 finance ministers and central bankers in Melbourne, Australia over the weekend. The BoJ released a transcript of the press conference today. "If such tendency in the domestic economy, gradual and steady growth on stabilized prices, would be maintained with no obstacles, the BoJ will gradually adjust interest rates while cautiously keeping eyes on various risks in the future. I reported (to the G20) so," Fukui said. According to the transcript, Fukui said: "If the domestic economy were to keep sustainable growth, price trends could incline toward inflationary but we are in a situation in which the inflation risk is not thought to be imminent." Japan has been on a gradual but sustained economic recovery track since January 2002, overcoming a mild contraction in the second and fourth quarters of 2004. In July this year, the central bank raised its key overnight call rate to 0.25 pct from near zero, the first hike in almost six years.