KAGOSHIMA, Japan Bank of Japan board member Seiji Adachi said on Wednesday it was too early to phase out ultra-loose monetary policy given the high uncertainty over the price outlook.

"We're seeing some changes in the public's deflationary mindset, or the perception that prices won't rise," Adachi said in a speech to business leaders in Kagoshima, southern Japan.

"In a sense, we're moving closer to achieving our price target. But there's high uncertainty over our baseline inflation outlook, so it's premature to tweak monetary policy," he said.

(Reporting by Leika Kihara; Editing by Shri Navaratnam)