Shirakawa Defends Japanese Economy

Japan's central banker,Masaaki Shirakawa,said he expects Japan's economy to stay stagnant for the time being,but it will not be in a deep 1990s type slump.Volatile markets and escalating prices have hurt,but the economy is likely to spring back once external factors stabilize.It is in better fundamental shape than it was in the past,when Japan faced excess labor and capacity.The Bank of Japan has left its key interest rate at 0.5,despite increasing concern about Japan's slowing economy,which is the world's second largest.Relatively weak consumption and industrial production,as well as slowing export growth and business investment,have troubled the Bank of Japan recently.