BoJ Osaka branch manager says smaller firms' wage talks may be affected by the Middle East conflict but no firms have indicated the conflict has hindered wage increases

The comments from the BoJ Osaka branch manager suggest that while smaller firms may face challenges in wage negotiations due to geopolitical tensions, no immediate impacts on wage growth have been reported. This indicates some resilience in the Japanese economy amidst external pressures, which could influence the Bank of Japan's outlook and policy stance regarding inflation and growth, particularly if wage increases remain steady despite these challenges.