Stronger growth in Japan supports June rate hike despite softer inflation
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JAPAN: Today's data in Japan was quite surprising. Despite soaring global energy prices, the economy appears to have held up well. Monthly activity data improved quite markedly while inflation decelerated. As growth concerns ease, the Bank of Japan is expected to deliver a June h
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4 itemsStronger growth in Japan supports June rate hike despite softer inflation
Japan’s stronger-than-expected GDP supports June BoJ rate hike
The desk's analysis centers on the strong growth in Japan's first-quarter GDP, which supports the expectation of a Bank of Japan rate hike in June. Per the full note from ING Economics, the data revealed a year-on-year increase of 3.9%, outperforming analyst forecasts of around 2.5%. This positive economic signal could shift market sentiment toward the yen as traders recalibrate their expectations for the upcoming monetary policy decisions from the BoJ.