The Bank of Japan’s quarterly regional report raised the economic assessment for two of nine regions and said AI-related demand for chip equipment and components remained strong.
The Bank of Japan on Thursday raised its economic assessment for two of Japan’s nine regions and left the other seven unchanged, the Japan Times reported, citing Jiji Press. The report was compiled at a meeting of regional branch managers at the bank’s Tokyo headquarters.
All nine regions were described as picking up moderately, recovering moderately, or on a moderate recovery trend, with some weakness in part. Tohoku was revised from “has been picking up” to “has been recovering moderately.” Shikoku was revised from “has been picking up moderately” to “has been picking up.”
On production, the bank raised its assessment for seven regions. Hokkaido and Tokai were the exceptions. The Japan Times said demand related to artificial intelligence remained strong, including for semiconductor manufacturing equipment and electronic components.
Nippon.com, also citing Jiji, reported an electrical-equipment maker in Osaka telling the bank that AI-related demand had increased faster than expected and was likely to stay robust for about three years. The reports did not include a policy-rate decision.
The assessment is the bank’s regional survey, not a revision of the national outlook. No new inflation or wage forecast was published with the Thursday report.
People Sentiments Positive
- An Osaka electrical-equipment maker told the bank AI-related demand had risen faster than expected and could stay strong for about three years.