(Bloomberg) -- Bank of Japan Governor Toshihiko Fukui said that keeping interest rates low may fan asset bubbles will encourage investors to borrow yen to buy higher yielding assets, signaling that borrowing costs will keep rising.
``If the expectation takes hold that low interest rates will continue regardless of the situation of both prices and the economy, then that could invite inefficient allocation of capital including real estate and the yen carry trade,'' Fukui said today in parliament.
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