BoJ's Fukui says low rates for too long will hurt

Bank of Japan governor Toshihiko Fukui told a seminar in Tokyo on Thursday 10 May that interest rates need to rise gradually despite Japanese prices responding slowly to strong global demand.

"Low interest rates are supportive but will hurt the economy if they are maintained too long," Fukui told an economic seminar.

Fukui noted that "expectations for inflation may rise ahead" and "Japanese companies may change their cautious stance on wage hikes."

Fukui said he was optimistic that the risk of t