BOJ warns Middle East conflict, oil surge may hit regional economies

TOKYO: The Bank of Japan said on Monday some regional economies could worsen due to surging oil prices and supply disruption ‌brought about ⁠by ⁠conflict in the Middle East.

"As uncertainty heightens, ​some firms worried that rising prices mainly for energy ​could hurt corporate profit and consumption," the bank said in a quarterly ​report on regional economies.

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There were ⁠also concerns ‌voiced by firms that ​supply disruptions ​caused by the Middle ⁠East war could broaden, the report said, warning ​that the conflict could hurt ​regional economies depending on future developments.

The report was released after a meeting of the BOJ's regional branch managers, who shared their findings on ‌surveys conducted until around late March.

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On the wage outlook, many regions said companies planned ⁠to raise wages this year around the same pace as last year, though some said their pay plans could be affected depending on the outlook of the Middle East conflict, the report said.