BoJ Rate Hike Odds Rise as Revised GDP Figures Surprise

Japan's economy grew faster than initially estimated in Q2, according to revised data released by the Cabinet Office. The annualized GDP expansion was 1.4%, exceeding the initial estimate of 1.1%. Economists' median forecast was for 1.6% growth.

The revision reflects a slight improvement in capital expenditure, which fell 0.9% in Q2, up from an initial estimate of a 1.2% drop but faster than economists' forecast for a 0.8% fall.

Kento Minami, senior economist at Daiwa Securities, noted that the economy's resilience is notable given the Middle East situation's potential impact. He sees this as a sign that the Bank of Japan can proceed with rate hikes.