Low rates not behind hedge fund moves

TOKYO, May 25 (Reuters) Japanese Finance Minister Koji Omi said on Friday there was no evidence that Japan's low interest rates are playing a large part in increasing global hedge fund activity.

''Japan is implementing appropriate economic policy while looking at the nation's economic conditions, and the Bank of Japan's current policy rate level is set based on this understanding,'' Omi told a lower house committee meeting.

Omi was responding to a question from an opposition lawmaker on whether he thought the BOJ's low interest rates were funding an increase in hedge fund activity around the world.

REUTERS SR VV1105