Japan's GDP Contraction Confirmed, BOJ Rate Hike Expectations Unchanged
AI Summary1 min read
TL;DR
Japan's Q3 GDP contraction worsened to 2.3%, driven by housing investment and export declines. Despite this, the Bank of Japan is still expected to raise interest rates to 0.75% this month.
Tags
Japan GDPBank of Japaninterest rateseconomic contractionbond yields
Japan's economy contracted 2.3% in Q3, revised from 1.8%, with a 0.6% fall on a quarter-over-quarter basis. The decline was driven by a temporary fall in housing investment and weaker exports. Despite the contraction, the Bank of Japan is expected to raise interest rates to 0.75% from 0.5% later this month, with the benchmark 10-year bond yield staying at a multi-year high of 1.95%.
