BOJ’s Official: if Omicron infections increase, may hit output via supply constraints in Asia

“If omicron infections increase, that could hit consumption in the region, may hit output via supply constraints in Asia,” Bank of Japan’s (BOJ) Osaka Branch Manager said after the central bank raised the economic view for all of Japan’s nine regions.

Additional comments

“More firms in region embarking on price hikes as rising raw material costs squeeze profits.”

“Domestic consumer inflation remains subdued so rising raw materials costs have not inflicted severe damage on consumption yet.”

“Wage hikes may broaden among firms that saw profits rise, though many in region prefer to compensate workers with bonuses rather than rise in regular pay.”