Bank of Japan Governor Kazuo Ueda said on Wednesday the central bank will raise interest rates if trend inflation accelerates in line with the bank's current projections.

"If inflation overshoots our forecasts or if upside risks become high, it will be appropriate for us to adjust interest rates earlier," Ueda said in a speech.

"On the other hand, if inflation undershoots or downside risks heighten, we must maintain current accommodative financial conditions for a longer period," he said. (Reporting by Leika Kihara; editing by Jason Neely)