Thursday, May 10, 2007

Fukui Says Prolonging `Very Low' Interest Rates May Cause Overinvestment

(Bloomberg) -- Japan's interest rates are ``very low'' given the economy's strength and failing to increase borrowing costs could cause overinvestment, Governor Toshihiko Fukui said.

``If we neglect to implement needed rate adjustments, that may accentuate risks to the economy that may not be so prominent otherwise,'' Fukui said at meeting of business executives in Tokyo today. ``We cannot meet our responsibilities if we fail to take necessary actions.''


Read more at Bloomberg Currencies News

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