Bank of Japan policy board member Kiyohiko Nishimura said the economy is expected to expand for now but there remain risks, mostly global but also domestic. He told a business community in Nagasaki City in southern Japan that the central bank's monetary policy stance is unchanged: "We have no presumptions." "On the near-term outlook for the Japanese economy, I don't see any problems in maintaining the scenario of 'expansion' for now, but we have to keep in mind that those (risk) factors could emerge," he said. At the top of Nishimura's list of risks to the economy is the US housing market, which he believes should soft-land after a recent boom but could still depress consumer spending if the value of real estate falls fast. The second risk factor is China, Nishimura said, in that its prospects for sustained, non-inflationary growth are based on a "delicate balance" and could be disturbed by unexpected changes to the political and economic climates. Thirdly, Nishimura urged caution on the recent rapid growth in Japanese exports to emerging economies such as Brazil, Russia and oil-producing countries, whose pace could slow down. The robust exports to these areas have been supported by record low yen levels since 1985 on a real exchange rate basis, but "we need to watch closely whether this strength will continue," he said. Nishimura also warned against the effect of high crude oil prices, which has pushed up costs of making steel, plastic and other products. The fifth risk factor is domestic. Although consumer spending has been "solid" and is "likely to stay on an uptrend," companies still need to produce more attractive goods and services, he said.