BoJ maintains assessment for 8 of Japan's 9 regions in its quarterly report

In its quarterly regional economic report published on Monday, the Bank of Japan (BoJ) maintained an assessment for 8 of Japan's 9 regions in its latest economic report. 

Additional takeaways

BoJ cuts assessment for 1 of Japan's 9 regions in quarterly report.

BoJ maintains assessment for 8 of Japan's 9 regions in quarterly report.

All regions said economy recovering moderately, picking up or picking up moderately.

Some regions cited firms saying they might need to curb wage hikes if trade policy, overseas slowdown leads to sharp downgrade in corporate profits.

Others cited firms saying they needed to continue raising wages due to recent price rises, labour shortages and hike in minimum wage.

Some regions said exports, output, capital goods orders were falling due to fading pent-up demand ahead of us tariff implementation.

Many regions said some firms taking tougher price negotiation stance due to hit from tariffs, but not enough to derail pass-through of labour costs.

Many regions said firms maintaining aggressive capex plans but some were putting off, reviewing plans due to trade policy uncertainty.

Many regions said firms continued to pass on rising input, labour and distribution costs via price rises.

Some regions cited firms restraining price hikes as food price rises hit consumers.

Market reaction 

At the time of writing, the USD/JPY pair is trading 1.92% higher on the day to trade at 150.35.