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Bank of Japan Deputy Governor Masayoshi Amamiya said on Wednesday that corporate profits will likely continue improving despite high costs caused by the rise in international commodity prices.

"Corporate profits are likely to continue improving on the whole on the back of a recovery in domestic and external demand, despite being pushed down by cost increases due to a recent rise in international commodity prices. Under these circumstances, an uptrend in business fixed investment is expected to become clear," Amamiya told business leaders in Niigata City via an online conference.

Amamiya, however, said "Attention should be paid to future developments in these prices and their impact on Japan's economy. The BOJ will continue to closely examine developments in economic activity at home and abroad."

"The employment and income situation, which shows the underlying developments in private consumption, has remained weak but not deteriorated significantly," he added.

"The unemployment rate rose last year but subsequently has been at around 3%. Against this background, employee income has turned positive on a year-on-year basis. It is likely to start picking up with a time lag following the recovery in domestic and external demand, and then increase moderately," he said.