Japan faces long slump, warns central banker

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TOKYO, Nov 13 (AFP): Japan's economy faces a long slump because of the global financial crisis, a member of the central bank's interest rate-setting committee warned today.
The financial is curbing economic growth, "putting the Japanese economy on the brink of a long-term adjustment phase," Bank of Japan policy board member Seiji Nakamura said in a speech in southwestern Japan.
"Turbulence in foreign markets is beginning to affect Japanese financial markets, which had been relatively stable," he said.
The Bank of Japan (BoJ) last month cut its super-low interest rates for the first time in seven years, joining central banks around the world fighting the worst financial crisis in decades by reducing the cost of borrowing.
Japan's economy shrank in the second quarter of this year and there are increasing fears that it is heading for a recession.