Japan economy

Bank of Japan chief calls for vigilance against impact of Middle East war

Governor Kazuo Ueda says rising crude oil prices will hurt Japan’s economy

BOJ Governor Kazuo Ueda said in March the central bank won’t rule out raising rates again if the war-induced economic downturn proves temporary, keeping alive the chance of an April rate hike.

Protracted Iran war narrows BOJ’s rate hike options

The BOJ is expected to revise upwards its inflation projections in April

The balance between such downside risks to growth and mounting inflationary pressure will be key to the BOJ’s decision at its next policy meeting on Apr 27 to 28.

Japan business mood worsens, bankruptcies seen rising as Iran war lifts costs

A separate government survey also shows business sentiment worsens in March

The wage gains come as the central bank has been looking for signs that solid pay increases will fuel spending that leads to demand-led price gains.

Japan’s real wages rise most since 2021 to keep BOJ on hike path

Uncertainty remains high as Middle East tensions could dent corporate profits

Big firms expect to increase capital expenditure by 3.3 per cent in fiscal 2026, compared with a median market forecast for a 3 per cent gain, the survey showed.

Sentiment improves among Japan’s big firms, but Iran war clouds outlook

[TOKYO] Business sentiment among large Japanese manufacturers improved in the three months to March, a closely watched survey showed on Wednesday, a sign that increasing economic uncertainty from the ...

Factory output and new orders in Japan both grew for a third consecutive month but at slower rates than in February.

Japan’s factory growth slows in March as Iran war weighs: PMI

[TOKYO] Japan’s factory activity expanded at a slower pace in March as growth in output, orders and manufacturers’ confidence cooled and cost pressures hit a 19-month high due to the Middle East confl...

The Tokyo core CPI, which excludes volatile costs of fresh food, rose 1.7 per cent in March from a year earlier, data showed, slowing from a 1.8 per cent rise in February.

Core inflation in Japan’s capital slows to 2-year low, stays below BOJ target

[TOKYO] Annual core inflation in Tokyo slowed to a nearly two-year low in March and stayed below the central bank’s target for a second straight month, data showed on Tuesday, as the effect of fuel su...

The currency has stayed around the 160 level that prompted government officials to intervene in the market on several occasions in 2024.

Japan’s inflation slips below BOJ’s target first time since 2022

Consumers are already contending with soaring petrol prices that threaten to prolong a cost-of-living squeeze of more than four years

Inflation expectations in Japan have been rising before the Middle East war, which has further added to the price momentum globally.

Japan considers cutting inflation-linked bond buybacks as demand rises: sources

Since restarting issuance, the government has sought to nurture the market by guaranteeing principal and continuing with its buybacks