BOJ's Iwata: Need to adjust rates with eye on risk

SHIMONOSEKI, Japan, Oct 4 (Reuters) - Bank of Japan Deputy Governor Kazumasa Iwata said on Thursday the central bank needs to adjust interest rates by closely examining risks for Japan's economic outlook.

"We need to be aware that stock price falls and the yen's rise, if sustained, could have a negative effect on Japan's economic outlook," Iwata said in a speech to business leaders in Shimonoseki, southwestern Japan.