BOJ's Muto says closely watching long term rates

The Bank of Japan is closely watching rising long-term interest rates to see if they affect the world's second-largest economy, Toshiro Muto, one of the bank's two deputy governors, said in a speech.

``We would like to closely monitor them so that they won't have an adverse impact on the economy,'' Muto told business executives in Kanazawa, northern Japan.

Muto said Japan's long-term rates have risen recently on strong economic growth at home and overseas, as well as changes in price movements