In the latest Regional Economic Report, BoJ downgraded the assessments of three regions, Hokuriku, Tokai and Chugoku. Nevertheless, all nine regions reported that “their economy had been either expanding or recovering.”
“The background to this was that domestic demand, in terms of such items as business fixed investment and private consumption, had continued on an uptrend, with a virtuous cycle from income to spending operating in both the corporate and household sectors, although exports, production, and business sentiment had shown some weakness, mainly affected by the slowdown in overseas economies and natural disasters.”
Earlier today, BoJ Governor Haruhiko Kuroda reiterated that “we will adjust policy as necessary to maintain momentum toward our price stability target while examining risks… We will not hesitate to take additional easing steps if risks heighten to an extent that the momentum toward the price target is undermined.”
