• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Exclusive-BOJ likely to warn of hit from Asia bottlenecks on exports, output – sources

September 10, 2021 by David Barret Leave a Comment

September 10, 2021

By Leika Kihara

TOKYO (Reuters) – The Bank of Japan is expected to offer a slightly bleaker view on exports and output this month, or warn of heightening risks from supply disruptions caused by factory shutdowns in Southeast Asia, said sources familiar with its thinking.

The gloomier assessment, combined with weaker-than-expected consumption in August due to coronavirus curbs, could cast doubt on the BOJ’s view that the economy is on track for a moderate recovery as it gears up for its policy meeting on Sept. 21-22.

“While overseas demand remains strong, the supply shock from Southeast Asia has put an unexpected damper on output,” said a source familiar with the BOJ’s thinking, a view echoed by three other sources. The sources could not be named because they were not authorised to speak publicly.

“Risks to the economy have heightened,” a second source said, warning of uncertainty over when supply chain disruptions will be resolved, and how long it will take for the economy to fully emerge from its pandemic doldrums.

Robust exports have helped underpin Japan’s fragile economic recovery from COVID-19. But supply constraints, mainly for chips and parts produced in Southeast Asia, have forced some Japanese firms to slash output, raising concerns among policymakers that Japan’s recovery could be delayed.

In its last assessment made in July, the BOJ described exports and output as “continuing to increase steadily.”

At the September meeting, the BOJ may qualify that view by mentioning how output, in particular, is temporarily weakening due to the supply constraints, the sources said.

The BOJ board will also debate at the meeting whether the recent weak batch of data would warrant downgrading its assessment of the economy from the current view that it is “picking up as a trend,” the sources said.

Most BOJ officials see no need to alter their long-term view the economy will recover next year through 2023 as the pandemic subsides, and expect solid global demand to underpin exports, they said.

But there is growing alarm within the central bank that the start of Japan’s recovery could be delayed with supply bottlenecks and prolonged pandemic-related curbs weighing on the fragile economy, they said.

Japan has been struggling with a fifth wave of the virus and on Thursday extended its long-running curbs until the end of this month for Tokyo and other regions, a move seen further weighing on household spending.

“A while ago, I thought the economy would recover as vaccinations proceed. Now, we’re seeing risks emerge regarding that scenario,” BOJ Deputy Governor Masazumi Wakatabe told a briefing last week. “I think Japan’s recovery will be delayed.”

Toyota Motor Corp cut its annual production target by 300,000 vehicles on Friday as rising COVID-19 infections slowed output at parts factories in Vietnam and Malaysia, compounding a global shortage of auto chips.

Japan’s auto industry lobby said disruptions could last through October.

The BOJ is widely expected to keep monetary settings unchanged at the September meeting. It will issue revised quarterly growth and inflation forecasts at a subsequent meeting on Oct. 27-28.

(Reporting by Leika Kihara, Additional reporting by Takahiko Wada and Kentaro Sugiyama; Editing by Sam Holmes and Ana Nicolaci da Costa)

Source Link Exclusive-BOJ likely to warn of hit from Asia bottlenecks on exports, output – sources

David Barret
David Barret

Related posts:

  1. U.S. securities regulator scrutinizes funds over ESG labels -sources
  2. Afghanistan a wake-up call for Europe on defence, leadership – France
  3. New Zealand tried to deport extremist Samsudeen for years
  4. Bitcoin rises back above $50,000

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • The First Humans Were Hunted By Leopards And Weren’t The Apex Predators We Thought They Were
  • Earth’s Passage Through The Galaxy Might Be Written In Its Rocks
  • What Is An Einstein Cross – And Why Is The Latest One Such A Unique Find?
  • If We Found Life On Mars, What Would That Mean For The Fermi Paradox And The Great Filter?
  • The Longest Living Mammals Are Giants That Live Up To 200 Years In The Icy Arctic
  • Entirely New Virus Detected In Bat Urine, And It’s Only The 4th Of Its Kind Ever Isolated
  • The First Ever Full Asteroid History: From Its Doomed Discovery To Collecting Its Meteorites
  • World’s Oldest Pachycephalosaur Fossil Pushes Back These Dinosaurs’ Emergence By 15 Million Years
  • The Hole In The Ozone Layer Is Healing And On Track For Full Recovery In The 21st Century, Thanks To Science
  • First Sweet Potato Genome Reveals They’re Hybrids With A Puzzling Past And 6 Sets Of Chromosomes
  • Why Is The Top Of Canada So Sparsely Populated? Meet The “Canadian Shield”
  • Humans Are In The Middle Of “A Great Evolutionary Transition”, New Paper Claims
  • Why Do Some Toilets Have Two Flush Buttons?
  • 130-Year-Old Butter Additive Discovered In Danish Basement Contains Bacteria From The 1890s
  • Prehistoric Humans Made Necklaces From Marine Mollusk Fossils 20,000 Years Ago
  • Zond 5: In 1968 Two Soviet Steppe Tortoises Beat Humans To Orbiting Around The Moon
  • Why Cats Adapted This Defense Mechanism From Snakes
  • Mother Orca Seen Carrying Dead Calf Once Again On Washington Coast
  • A Busy Spider Season Is Brewing: Why This Fall Could See A Boom Of Arachnid Activity
  • What Alternatives Are There To The Big Bang Model?
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version