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Bank of Japan warns of economic uncertainty from Ukraine war

Bank of Japan (BOJ) Governor Haruhiko Kuroda has warned of “very high uncertainty” over the fallout from the Ukraine crisis. The BOJ has downgraded its assessment for eight of Japan’s nine regional economies in the country underscoring heightening risks to the economic recovery. A senior BOJ official also warned that excessive volatility in yen moves could hurt businesses, signalling the bank's alarm over the currency's slide to its lowest level against the dollar since 2015. Hirohide Kouguchi, who heads the BOJ's Osaka branch, said a further rise in commodity costs could hurt consumption, corporate profits and capital expenditure. He said that while the weak yen is generally beneficial for the Kansai region, it is among factors pushing up import costs. The BOJ's regional report will be among factors due to be scrutinised at its next policy meeting starting on April 27.

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