BOJ's Shirakawa: Need caution on downside risks

TOKYO, May 12 (Reuters) - Bank of Japan Governor Masaaki Shirakawa said on Monday that the central bank must pay close attention to the risks facing the economy.

He also said in a speech in Tokyo that while the BOJ would raise interest rates if uncertainties over the economy cleared, it would be appropriate to keep rates on hold -- or even cut them -- if the economy were hurt by rising energy prices.

"We are now at the stage where we need to pay utmost attention to the downside risks to the economy," Shirakawa said. (Reporting by Yoko Nishikawa and Hideyuki Sano)