Bank of Japan Shirakawa warns that Japan economic sluggishness is rising rapidly, according to comments on Reuters. He says that he is carefully examining the impact of forex moves on the economy and that big forex moves could affect the economy. He warns that Japanese prices could briefly fall in fiscal 2009, and he needs to watch the downside risks in the near term for guiding policy. Shirakawa also notes that the availability of funding is falling sharply for Japanese firms and that the global economy is showing clearer sings of a slowdown. The comments have come reports that the BOJ will discuss and easier loan policy this week.
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