TOKYO - Shigeru Ishiba, a former defense minister, said on Saturday that he would run in the ruling Liberal Democratic Party leadership election on Sept 27 that will pick a successor to Prime Minister Fumio Kishida.

Kishida will step down in September, ending a three-year term as leader of the world's fourth-largest economy.

READ MORE: Japan's ruling LDP sets leadership election for Sept 27

In a recent interview with Reuters, Ishiba endorsed the Bank of Japan's policy of gradually raising interest rates, saying the normalization of ultra-loose monetary policy could push down prices and boost industrial competitiveness.