Bank of Japan Governor Toshihiko Fukui said Tuesday that corporate capital spending hasn't overheated, but the BOJ has to carefully watch whether its easy policy will overstimulate spending. "I don't feel there is a risk of overheated spending now, but we must watch whether a prolonged easy policy will overstimulate corporate activity." When asked about rate hikes in December, Fukui said the central bank will carefully assess various economic data and will not decide on monetary policy before its next scheduled meeting. The BOJ's policy decision meeting is scheduled Dec. 18-19 on the heels of the release of the BOJ's December tankan corporate sentiment survey due Dec. 15. Market players speculate that the central bank may raise interest rates at the December meeting. But Fukui didn't elaborate on the exact rate hike timing. "We will continue to carefully assess whether the economy and prices move on the basis of our scenario," Fukui said. As for adopting an inflation target policy, Fukui said that the central bank continues to consider whether the policy would be effective as a tool to increase transparency. Fukui suggested Monday in Osaka that he remains skeptical of the inflation target policy as it could lead to rigid policy. "The inflation target policy calls on a central bank to increase the inflation rate to a certain level in a certain period. But the economy may swing sharply after the central bank achieves this goal." The policy could eventually make the economy more volatile, Fukui said.