Global Market: Bank of Japan keeps regional economic view unchanged as Middle East risks ease

Bank of Japan kept its regional economic assessment unchanged across all nine regions in its quarterly report, citing reduced risks from the Middle East conflict to exports and industrial output. The report noted that Japanese companies are increasingly passing on higher input costs to consumers, signalling a shift away from the country's long-standing low-inflation environment. Sustained evidence of pricing power and stable business activity could reinforce the BOJ's view that inflation is becoming more sustainable, with implications for its future monetary policy stance.