BOJ Rate Hike Bets Strengthen on 1.4% GDP and Fastest Wage Gain in Nearly 30 Years
Updated
Updated · The Japan Times · Sep 7
BOJ Rate Hike Bets Strengthen on 1.4% GDP and Fastest Wage Gain in Nearly 30 Years
3 articles · Updated · The Japan Times · Sep 7
Summary
Japan’s revised second-quarter growth and July wage surge strengthened the case for a Bank of Japan rate increase at its Sept. 18 meeting, a move already heavily priced in by swaps.
GDP expanded at a 1.4% annualized pace, up from an initial 1.1% estimate, supporting the BOJ’s view that the economy is tracking broadly in line with its outlook.
July wages rose the most in nearly three decades, adding evidence that domestic income growth can sustain inflation and justify higher borrowing costs.
The GDP revision still fell short of the 1.8% median economist forecast, but the combined growth and wage data reinforced expectations that the BOJ will tighten policy next week.