At a Thursday meeting, Bank of Japan branch chiefs said Japan's economy remains
broadly resilient despite Middle East tensions, rising oil and a weak yen. They
noted geopolitical-driven logistics disruptions and raw-material shortages have
weighed on exports and production, but that the risk of a sharp downturn has
eased as firms shift sourcing and adjust shipping routes. The branch assessment
could reinforce short-term hawkish pressure; overnight index swaps currently
price at least one BOJ rate hike by year-end.
