This photo shows the Bank of Japan headquarters in Tokyo. (Mainichi)
TOKYO (Kyodo) — The Bank of Japan on Monday maintained its economic assessments of eight of the country’s nine regions despite higher U.S. tariffs, while downgrading its assessment for Hokkaido, citing weak consumer spending.
In its quarterly Sakura report on regional economies, the central bank said all nine regions had been “recovering moderately,” “picking up” or “picking up moderately,” although some weakness was observed in certain areas, using the same expressions as in the previous survey.
The BOJ cited views from a meeting of its regional branch managers earlier Monday, noting that uncertainties over U.S. trade policy have prompted delays or reviews of investment.
Regarding the impact of the U.S. levies on exports and output, however, many branches reported that it has not prevented companies from passing rising labor costs on to sales prices, according to the BOJ.
As persistent inflation prompts consumers to tighten their belts, supermarkets have reported shoppers buying fewer items, while restaurants that have raised prices have seen fewer customers, the BOJ said.
For Hokkaido, northern Japan, the BOJ lowered its assessment as the region’s key tourism industry was dampened by sluggish spending by foreign visitors, mainly from other parts of Asia, an official said.
The latest Sakura report was published ahead of the BOJ’s policy meeting in late October, during which its board members are expected to discuss whether to resume interest rate hikes.
AloJapan.com