TOKYO: The Bank of Japan on Monday cut its assessment for most regional economies in the country and its governor warned of “very high uncertainty” over the fallout from the Ukraine crisis, underscoring heightening risks to the economic recovery.

In a quarterly report analysing regional Japanese economies, the central bank offered a bleaker view than in January for eight of the country’s nine regions as a resurgence in COVID-19 cases and lingering supply constraints hit growth.

Bank of Japan (BOJ) Governor Haruhiko Kuroda said the national economy continues to pick up, but warned of the potential fallout from rising commodity costs and the war in Ukraine.

“There’s very high uncertainty on how developments in Ukraine could affect Japan’s economy and prices,” he said in a speech to a meeting of the BOJ’s branch managers.

BOJ’s Kuroda cautions that recent yen moves have been ‘somewhat rapid’

The BOJ’s quarterly regional report will be among factors the central bank will scrutinise in releasing fresh quarterly growth and inflation projections at its next policy meeting on April 27-28.