Slowing Growth Throws BoJ Rate Hike Plans into Question

Japan's economic growth has slowed down unexpectedly in the three months through June. According to a Cabinet Office report, real gross domestic product grew 1.1% on an annualized basis in the second quarter.

This is slower than the revised 1.9% pace in the previous quarter and falls short of economists' forecast for 2% growth. Despite this, it marks a third consecutive expansion.

Capital investment declined by 1.2% on a non-annualized basis, which is steeper than the revised 1% drop in the previous period. This also missed the estimate for 0.5% growth.