Japan’s economy grew at a faster clip in the second quarter than initially estimated while wages jumped the most in nearly three decades in July, supporting the case for a widely expected Bank of Japan interest-rate hike next week. Gross domestic product expanded 1.4% from the previous quarter on an annualized basis, up from an earlier estimate of 1.1%, according to a report by the Cabinet Office Tuesday. While the result was weaker than the median economist estimate of 1.8%, it supported the BOJ’s assessment that the economy is developing broadly in line with its outlook and reinforced the case for raising borrowing costs when the board next sets policy on Sept. 18.
Swap contracts heavily point to a move at that time.
Extract — continue reading at the source.
