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Wednesday, Bank of Japan board member Miyako Suda said instability in the currency market would adversely impact the economy. The central bank would not rule out any policy options, Suda added.
In a speech in Kofu, Suda said in the short term, there seems to be a rising risk that the recent movements in the global financial markets and instability in the currency market will have an adverse impact on economic activity by worsening corporate and household sentiment.
"We are always open to what is the best policy," she added. If price declines continue longer than expected, the risk of a deflationary spiral would compel consumers to delay consumption and worsen corporate earnings.
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