BOJ Quarterly Report Maintains 8 Regional Assessment and 1 Upgrade

The Bank of Japan on Monday retained its assessments on eight of nine regional economies, with some companies becoming wary of the political and economic outlook in the United States and Europe.

The central bank’s quarterly report came as geopolitical risk is deemed to be on the rise after U.S. military strikes on Syria last week, with uncertainty surrounding U.S. President Donald Trump’s economic policies lingering.

Political instability in Europe has also made more Japanese firms reluctant to beef up production and investment, the report suggested.

“As the situation is unclear in the United States and Europe, we have refrained from bolstering production,” a machine manufacturer in the Kanto-Koshinetsu region, including Tokyo, was quoted as saying by the BOJ in the report.

As for the U.S. economy, concerns have been mounting over whether Trump will be able to implement his key economic policies after his failure to repeal his predecessor Barack Obama’s healthcare law last month.

The central bank, meanwhile, upgraded its assessment on the economy in the Hokuriku region on the Sea of Japan as the impact of the Hokuriku Shinkansen Line bullet train service directly linking the area to the capital flowed on.

via Mainichi

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza