BOJ Shirakawa: Japanese Economy Likely To Stay Sluggish For Now

The Japanese economy is likely to remain sluggish in the near term, Bank of Japan Governor Masaaki Shirakawa said on Tuesday, but was expected to gradually return to a path of moderate growth.

Speaking at a business meeting in Nagoya, Shirakawa said the economy needed to avoid secondary inflation risks, and that it was important to stay vigilant for downside risks to the economy and upside risks to inflation. Shirakawa also said that he expected the U.S. economy to remain weak in the near-term, and that he sees downside risks for the global economy. Shirakawa will appear in a press conference in the afternoon, followed by another speech at Nagoya University. Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved