BOJ's Nishimura sees low rates problem

Keeping Japan's interest rates at low levels for a prolonged period may cause excessive investment by companies and overstimulate economic growth, according to Kiyohiko Nishimura, a Bank of Japan policy maker.

``Now that inflation is entering positive territory, maintaining nominal interest rates at extremely low levels for a prolonged period could cause considerable trouble in the long run, though the risk may be small,'' Nishimura said Thursday in a speech in Nagasaki, southwestern Japan.


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