--BOJ says downside risk on future econ is increasing
--BOJ sees risks for further slowdown on overseas econ
--BOJ says export falls are inevitable for the time being
--BOJ says housing investment stays flat
--BOJ repeats recovery pace is slowing due to slowdown in export growth
--BOJ: Output continues to rise, but the pace is slowing

By Keiko Ujikane, BridgeNews
Tokyo--Feb. 13--The Bank of Japan (BOJ) left nearly unchanged its core economic assessment for February, released Tuesday, after downgrading the view for the previous two consecutive months. But the central bank struck a more cautious tone on the future of the economy, saying downside risks such as a deceleration of overseas economies and developments in overseas and domestic capital markets, need to be closely watched.
* * * On Friday, the BOJ policy board decided to cut the discount rate to a new record low of 0.35% from 0.50% but left unchanged the unsecured overnight call loan rate--the BOJ's main policy indicator--at around 0.25%.
In February's report, the BOJ kept its core economic assessment unchanged from January, repeating that "Japan's economy continues to recover gradually, but the pace is slowing due to decelerating export growth."