In its latest Regional Economic Report, BoC indicated that all nine regions in the country are “recovering moderately, picking up, or picking up moderately”. Also, BoJ upgraded its economic assessments for the Hokuriku and Tokai regions, reflecting stronger local conditions.
In a separate release summarizing discussions among branch managers, BoJ noted that many business leaders increasingly believe wages need to continue rising into next year. This reflects growing wage pressure, which has been a key driver of consumption. Younger workers, in particular, have seen “fairly big pay hikes”, boosting their spending power and supporting the broader economy.
However, the central bank cautioned that smaller and medium-sized businesses are struggling to generate sufficient profits to sustain wage hikes. BoJ emphasized that this situation “required vigilance.”
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