Kathmandu. Revised government data shows that Japan’s economy expanded at a faster pace in the second quarter of the current fiscal year than initially estimated. This data has been released amid expectations that Japan’s central bank will raise interest rates next week.
According to the Cabinet Office of Japan, the world’s fourth-largest economy expanded by 0.4 percent in the three months from April to June. The initial estimate released earlier had projected economic growth at 0.3 percent.
Analysts had stated that the initial data could make it difficult for Japan’s central bank to raise interest rates amid rapidly rising inflation and a weak yen.
According to revised data, private consumption and corporate investment, although still weak, appear to be slightly better than initially estimated. On the other hand, imports being lower than initially estimated has helped the revised growth rate of gross domestic product to rise.
Japan’s central bank is expected to raise its main interest rate next week. Meanwhile, news has emerged that Prime Minister Sane Takaichi is preparing to reshuffle the cabinet. However, no major changes are expected.
The Japanese yen has come under pressure due to concerns over high oil import costs and Prime Minister Takaichi’s spending plans.
However, as discussions about the possibility of interest rate hikes have increased, the yen has strengthened somewhat this month and is moving towards its highest level of the year.
The yen has received further support after US Treasury Secretary Scott Bessent stated in a conversation with Bank of Japan Governor Kazuo Ueda that he is in favor of Japan taking decisive steps in the market and monetary sector.