Mr. Masaaki Shirakawa the governor of the Bank of Japan said today at a Paris Europlace Financial Forum in Tokyo that keeping interest rates in the U.S at its low level will lead to a substantial increase in long term interest rates by increasing inflation and rising forecasts of a continuous weakness in the U.S dollar which means the government will face a fiscal burden increase and it will need to adjust its balance sheet.

On the other hand Shirakawa said that low borrowing costs is helping companies and households to pare debt. The Federal Reserve Bank decided to keep interest rates between 0.0% and 0.25% since December to support the economy after it was hit by the financial crisis the worst since the great depression.