8 Jun 2015
Larger upward revision to Q1 GDP suggests BoJ might refrain from additional easing – BTMU
FXStreet (Barcelona) - With Japan’s second estimate of the Q1 GDP seeing a larger upside revision to 3.9% from previous 2.4%, Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, believes that this would push the BoJ to maintain its current easing policy.
Key Quotes
“The second estimate of Q1 GDP in Japan revealed a larger than expected upward revision to growth. The economy expanded by a robust annualized rate of 3.9% in Q1 compared to the initial estimate of 2.4%.”
“The upward revision was mainly driven by stronger capital investment which expanded by 2.7% in Q1 compared to an initial estimate of just 0.4%. The report highlights that the pick-up in domestic demand was even more reassuring in Q1 than initially reported although headline growth was still exaggerated by large inventory build. It will support the BoJ’s current stance to maintain the current pace of monetary easing.”
Key Quotes
“The second estimate of Q1 GDP in Japan revealed a larger than expected upward revision to growth. The economy expanded by a robust annualized rate of 3.9% in Q1 compared to the initial estimate of 2.4%.”
“The upward revision was mainly driven by stronger capital investment which expanded by 2.7% in Q1 compared to an initial estimate of just 0.4%. The report highlights that the pick-up in domestic demand was even more reassuring in Q1 than initially reported although headline growth was still exaggerated by large inventory build. It will support the BoJ’s current stance to maintain the current pace of monetary easing.”