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Interest-Rate Surge Marks 'Correction' Phase, Bank of Japan Chief Says.

Kyodo News International, Tokyo Knight Ridder/Tribune Business News

Jul. 7--OSAKA, Japan--Bank of Japan (BOJ) Governor Toshihiko Fukui indicated Monday he does not see recent rises in long-term interest rates as having a negative impact on Japan's economy, but regards them as a necessary adjustment from excessively low levels.

"While some point out (the rates) had tended to overshoot downward, we saw (the recent surge) as a correction from excessively low levels," Fukui said at a news conference after holding talks with business leaders in Osaka.

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