BOJ Downgrades Economic Views on Hokkaido, Chugoku Regions

October 18, 2018

Tokyo- The Bank of Japan on Thursday revised down its economic views on the Hokkaido and Chugoku regions, following the recent earthquake in the northernmost prefecture and heavy rains in western Japan.

In the latest version of its quarterly Regional Economic Report, the BOJ kept its views on seven other regions unchanged from the previous report released in July. The bank adopted the new report at a meeting of its regional branch managers on the day.

"The Japanese economy is expanding moderately," Governor Haruhiko Kuroda told the meeting, reiterating the bank's policy of maintaining the current superloose monetary policy.

The BOJ noted downward pressure from the September temblor on the Hokkaido economy, citing reports from local businesses that tourism demand shrank and that hotel reservations by foreign visitors slumped.

From the Chugoku central region, there was a report that it is difficult to make up for a delay in automobile-related production due to the heavy rains in July, which caused landslides and floods in many places in the region.

The BOJ kept its view on the Kinki western region unchanged, saying that the region's economy "has been expanding moderately" despite negative effects of Typhoon Jebi, which caused a temporary shutdown of Kansai International Airport in September.

As for other regions, the BOJ observed economic recovery or expansion.

The BOJ report cited worries expressed by many companies about the protectionist U.S. trade policy.

An auto-related company said the group's overall profit ratio fell due to higher U.S. tariffs on Chinese imports.

A production machinery maker said it will shift production of U.S.-bound products from China to Japan and Thailand. Jiji Press