BoJ's regional assessment report sees impact of US tariff policies

In its quarterly regional economic report published on Thursday, the Bank of Japan (BoJ) is expected to reflect uncertainty over how US tariffs will affect local businesses.

Additional takeaways

As for impact of trade policies of each countries, some regions said firms were putting off or reviewing capex plans.

Many regions said impact of US tariffs on exports, output limited for now.

Many regions said firms were worried about declining demand from rising US sales prices, slowdown in global economy.

Many regions said wage hikes were at high levels this fiscal year in wide range of industries.

Some regions cited calls by firms that they could cut winter bonuses if profits undershoot estimates.

As for next year's wage-setting, some firms voiced concern over raising wages further while others saw need to keep raising pay to retain talent.

Many regions said firms continued to hike prices to pass on input, labour, distribution costs.

Some regions saw firms holding off price hikes as consumers cut back on spending.

Many regions said services consumption remained firm.

Market reaction

At the time of writing, the USD/JPY pair is trading 0.01% lower on the day to trade at 146.32.