Japan’s faster GDP, wage growth support BOJ interest-rate hike
The economy grew at a faster clip in the second quarter than initially estimated while wages jumped the most in nearly three decades in July.
Japan's economy expanded more quickly in the second quarter than previously thought, while wages also rose significantly in July, bolstering the case for a prospective Bank of Japan interest rate increase later this month. The country's gross domestic product (GDP) grew by 1.4% from the previous quarter on an annualized basis, higher than an earlier estimate of 1.1%, according to a report by the Cabinet Office on Tuesday.
Although this figure was lower than the median forecast of economists, which stood at 1.8%, it still aligned with the Bank of Japan's assessment that the economy was progressing in line with expectations, thereby supporting the argument for raising borrowing costs when the board convenes for its next policy decision on September 18. Swap contracts indicate a high likelihood of an interest rate hike at that time.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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