Japan’s central bank maintains its moderate recovery outlook for all nine regions amid wage hikes and rising input costs.
The Bank of Japan kept its economic assessments unchanged for all nine regions in its latest quarterly report, describing most as “recovering moderately.” The report noted sustained capital expenditure plans, particularly in chip equipment, driven by global AI demand.
Several regions flagged risks of declining exports and slight output reductions. Wage growth remained strong, though some firms warned of challenges sustaining pay increases. Companies continued passing rising labor and distribution costs to consumers, with faster pass-through of raw material expenses linked to Middle East tensions.
USD/JPY edged down 0.14% to 162.35 following the release.