The global economy could slow further as the ongoing financial turmoil is expected to increasingly affect the real economy, Bank of Japan Policy Board member Hidetoshi Kamezaki said today.
While the credit crisis will bring about "strong downward pressures, every region (of the world) is likely to face a deterioration (in its economy), further slowing down the pace of growth," Kamezaki told a meeting of local business leaders in Kagawa Prefecture.
The member of the central bank's interest rate setting panel also said the Japanese economy has seen weakening exports lead to a negative spiral that has adversely impacted the nation's industrial output, employment and individual consumption.
On prices, Kamezaki said the country's consumer prices, which earlier this year shot up on rising crude oil prices, will continue to slacken their upward pace.