Skyline of Tokyo, Japan.
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Japan's third-quarter existent gross home product expanded 0.3% twelvemonth connected year, snapping 2 consecutive quarters of year-on-year decline.
The GDP speechmaking marked a reversal from the revised 1.1% diminution seen successful the 2nd quarter.
The information comes against the backdrop of the Bank of Japan raising rates from 0.1% to 0.25% successful July — its highest level since 2008.
Higher argumentation rates mostly chill the economy, and vice versa. The BOJ has stated that it volition proceed to rise rates "if economical enactment and prices make arsenic expected."
On a quarter-on-quarter basis, GDP roseate 0.2%, successful enactment with Reuters canvass estimates.
On an annualized basis, the system expanded 0.9%, beating estimates of a 0.7% expansion. However, this was a crisp diminution from the 2.9% emergence successful the 4th before.
Should economical indicators autumn into place, the BOJ said it could rise rates to 1% by the 2nd fractional of its 2025 fiscal year, starting from September 2025.
In October, Shigeru Ishiba, Japan's premier minster, reportedly said that "I bash not judge that we are successful an situation that would necessitate america to rise involvement rates further," aft gathering with BOJ politician Kazuo Ueda.
This was successful opposition to comments he made successful August to Reuters, wherever helium said the BOJ was "on the close argumentation track" to normalize rates.
Following the GDP information release, the benchmark Nikkei 225 roseate 0.76%, portion the broad-based Topix climbed 0.64%.
The Japanese yen weakened 0.16% against the U.S. dollar aft the GDP announcement, trading astatine 156.51.
The yen has seen wild swings successful the 3rd quarter, prompting aggregate rounds of verbal warnings from concern ministry officials against "excessive speculation" and adjacent interventions by the BOJ.
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