BOJ's Noda says risks to global economy rising

MAEBASHI, Japan, March 12 (Reuters) - Bank of Japan board member Tadao Noda said on Wednesday that downside risks to the global economy were rising and that market adjustments ensuing from the U.S. subprime loan problems would take significant time.

But Noda said it would be appropriate for Japan's central bank to stick to a stance of raising interest rates gradually if the nation's economy stays on a sustained growth path.

"There is no clear evidence suggesting that (the positive economic cycle) will fall apart completely," Noda said in a speech to business leaders in Maebashi, north of Tokyo.

Noda, a banking industry veteran, is regarded by markets as somewhat hawkish on monetary policy. (Reporting by Leika Kihara)