Japan's Yosano says stable long-term rate critical

Kaoru Yosano, Japan's newly appointed state minister for economic and fiscal policy, said that keeping long-term interest rates stable at low levels is vital to the success of fiscal and budget reforms.

Yosano also said that he may ask the Bank of Japan to consider taking special policy action on government bond purchases, if needed.

He will also serve as head of the Financial Service Agency, a regulator for financial institutions.

"A one percentage point rise in long-term interest rates would i