By Leika Kihara

TOKYO The Bank of Japan said on Friday it will debate the benefits and costs of unconventional monetary policy in a workshop on Dec. 4 as part of a comprehensive review of its monetary policy.

The comprehensive review is Governor Kazuo Ueda's flagship project that looks into the effects and side-effects of various monetary easing steps taken by the BOJ during its 25-year battle with deflation.

While the BOJ has said the review won't have a direct impact on future monetary policy, analysts say the discussions could offer clues on how Ueda could dismantle the radical stimulus measures deployed by his predecessor Haruhiko Kuroda.

Deputy Governor Shinichi Uchida will deliver remarks at the Dec. 4 workshop, which will consist of sessions discussing the effect and side-effect of unconventional monetary policy on financial markets, the banking system and the BOJ's balance sheet, the BOJ said.

The workshop will be closed to the media, but a summary of discussions will be posted on the BOJ's website, it said.

The BOJ said it plans to hold a second workshop around May next year.

With inflation exceeding the BOJ's 2% target for more than a year, markets are rife with speculation the central bank will soon end its negative interest rate policy and a policy capping the 10-year bond yield around zero.

(Reporting by Leika Kihara; Editing by Kim Coghill and Jacqueline Wong)