Japan's new Prime Minister has bluntly stated that the current environment is not suitable for further interest rate hikes, with Haruhiko Kuroda cautioning that he will act prudently when deciding whether to raise rates further.

After meeting with Bank of Japan Governor Haruhiko Kuroda on Wednesday, Prime Minister Shinzo Abe indicated that Japan's current environment is not conducive to further interest rate hikes, marking his most explicit statement to date against additional rate increases, apparently in an effort to shed his reputation as a hawk on monetary policy.

Following Shinzo Abe's remarks, the yen weakened as the market interpreted them as reducing the likelihood of a near-term rate hike. The US dollar against the yen broke through 147 on Thursday, reaching a new high since September 3, after a 2% surge the day before, successively crossing the thresholds of 144 to 146.

A survey conducted by Reuters from September 4 to 12 showed that the majority of economists expect the Bank of Japan to raise rates again before the end of the year.

Shinzo Abe, who was officially appointed Prime Minister on Tuesday, is seen by the market as supporting the normalization of the Bank of Japan's policies, partly because he stated in August that gradually increasing ultra-low interest rates would help improve Japan's profitability.

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Analysts say that his current statements and his focus on getting Japan out of economic stagnation highlight the new government's desire for the Bank of Japan to slow the pace of rate hikes.

Ryosei Akazawa, the newly appointed Minister of Economy, Trade and Industry by Shinzo Abe, also stated on Wednesday that he hopes the Bank of Japan will exercise caution when considering further rate hikes.

Ryosei Akazawa said that although the Bank of Japan's current policy interest rate is 0.25%, which is "abnormal by global standards," Japan's top priority is to "escape deflation."

The Bank of Japan will act with "prudent formality."

After meeting with Shinzo Abe, Haruhiko Kuroda stated that he told the Prime Minister that the Bank of Japan will act cautiously when deciding whether to raise rates further."I told the Prime Minister that we are supporting the economy with loose monetary conditions," said Haruhiko Kuroda in his first meeting with Shigeru Ishiba.

He added that if economic and price developments align with its forecasts, the Bank of Japan will raise interest rates. "But I have said that we will carefully adjust the degree of monetary support because we have the ability to take our time to review (economic) developments," he said.

The Bank of Japan ended negative interest rates in March and raised short-term borrowing costs to 0.25% in July, as policymakers believe Japan is moving towards a sustainable 2% inflation rate.

Due to previous hawkish remarks that triggered a market crash, Haruhiko Kuroda was forced to retract his comments made during the Bank of Japan's July rate hike, stating that borrowing costs would continue to rise.

In a speech before meeting Shigeru Ishiba on Wednesday, Haruhiko Kuroda said that the Bank of Japan will currently remain "highly" vigilant about the economic impact of market instability and global economic uncertainty.

The Bank of Japan will review interest rates again on October 30-31, when the committee will also release new quarterly growth and price forecasts. The final meeting of the year will be held in December.

"The remarks by Shigeru Ishiba and Akira Amari are clearly negative towards further rate hikes in the near future. It is now impossible for a rate hike in October," said Yoshimasa Maruyama, Chief Market Economist at SMBC Nikko Securities. "The barriers to another rate hike before the end of the year have also increased," he said.