Tokyo, Mar 6 (IANS): Nearly 40 per cent of Japanese companies want the Bank of Japan (BOJ) to scale down its ultra-loose monetary policy over the next year, local media reported citing a recent survey.

According to a survey by research firm Teikoku Databank, of around 1,000 valid respondents, 39.6 per cent called for a scaling back of the massive monetary easing programme, while 36.4 per cent said the central bank should stick to its current policy designed to keep interest rates at low levels to support the economy, Kyodo News reported on Sunday.

"While many think it is desirable for the BOJ to revise its strategy of unprecedented monetary easing, they are concerned about the risks posed by a sudden policy change and called for a gradual shift," the Tokyo-based research firm said in the survey.

The Japanese central bank keeps short-term and long-term rates at ultra-low levels through its massive bond-buying programme, putting it at odds with major central banks shifting toward tighter monetary policy, Xinhua news agency reported.

While the BOJ's dovish policy helps to bolster the economy, analysts have pointed out side effects, including excessive depreciation of the yen and distortion of the bond market, Kyodo News said.