Bank of Japan Deputy Governor Toshiro Muto told a parliamentary committee that the recent rise in long-term interest rates in Japan reflect varying views in the market and the rates are expected to adjust themselves eventually. Muto also told the financial affairs committee of the upper house of parliament that the slightly volatile long-term rates are mirroring Japan's sustained economic growth and interest rate movements in other countries. "There is a high possibility that long-term rates in Japan and elsewhere will adjust themselves eventually," Muto said. "It is important for us to brief the markets and public on our views on prices and the economic climate... and long-term risks... in the six-monthly outlook," he said. "We hope that the markets will digest the outlook report and interest rates will adjust on their own." In the report due out April 28, when the BoJ holds the next policy board meeting, the central bank will present the board's forecast for growth and inflation rates for the current fiscal year that began April 1 and the following year. As for the overnight rate that the BoJ has kept near zero pct, Muto said, "We have no pre-drawn scenario about when to end the zero rate policy." "It is up to the economic condition at the time (of the BoJ's decision-making)," he added. Finance Minister Sadakazu Tanigaki repeated his warning at the same committee meeting that the rise in long-term rates in Japan has been "too fast" and could have "an adverse effect" on growth at a time when "mild deflation is still continuing." The yield on the 10-year Japanese government bond hit 2 pct earlier this week, the highest in more than six years, on speculation that the BoJ will begin hiking rates later this year and also in line with higher US interest rates. Economic and Fiscal Policy Minister Kaoru Yosano also told the same committee that Japan's long-term rates reflect movements in global markets. He said the fact that Japan's overnight rate is stuck near zero is "abnormal" and "will not stay there forever," adding the appropriate timing for ending the zero rate policy is "yet to be seen" and up to the BoJ's decision.