Tokyo, Japan skyline.
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Japanese Real gross domestic product in the third quarter The year-on-year growth was 0.3%, ending two consecutive quarters of year-on-year decline.
The GDP data reversed the second quarter’s revised 1.1% decline.
The data came as the Bank of Japan raised interest rates in July from 0.1% to 0.25%, the highest level since 2008.
Higher policy rates typically cool the economy and vice versa. The Bank of Japan has point out “If economic activity and prices develop as expected,” it will continue to raise interest rates.
On a quarterly basis, GDP grew 0.2%, in line with expectations in a Reuters poll.
On an annualized basis, the economy grew by 0.9%, exceeding expectations of 0.7%. However, this was down sharply from the previous quarter’s 2.9% growth.
The Bank of Japan said it may raise interest rates to 1% in the second half of fiscal 2025, starting in September 2025, if economic indicators are in place.
In October, Japanese Prime Minister Shigeru Ishiba, It is reported that After meeting with Bank of Japan Governor Kazuo Ueda, he said “I don’t think we are in an environment that requires us to raise interest rates further.”
This is in stark contrast to his comments Made in August He told Reuters the Bank of Japan was “on the right policy track” in normalizing interest rates.
After the GDP data was released, the benchmark Nikkei 225 index rose 0.76% and the composite index rose 0.64%.
After the GDP was released, the yen fell 0.16% against the US dollar to 156.51.
The yen’s sharp swings in the third quarter prompted Finance Ministry officials to repeatedly warn against “excessive speculation” and even for the Bank of Japan to intervene.
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