BoJ Governor Warns of Potential Large-Scale Supply Chain Disruptions Amid Middle East Conflict

According to Bank of Japan Governor Ueda Kazuo, the central bank cannot rule out the possibility of large-scale supply chain disruptions, which would have significant impacts on Japanese manufacturing activity. Ueda stated the BoJ will carefully assess whether Japan's economy has sufficient resilience to withstand negative shocks from Middle East tensions and avoid sharp economic deterioration. While Japanese exports and output have remained broadly flat overall, semiconductor and electronic component production has shown strong resilience, which Ueda described as crucial for avoiding severe risk scenarios.
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