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20 May 2015
Japan GDP smashed consensus ahead of BoJ meeting - BBH
FXStreet (Guatemala) - Analyst at Brown Brothers Harriman explained that Japan GDP grew 2.4% annualized in Q1, considerably faster than the 1.6% consensus and revised 1.1% (was 1.5%) in Q4.
Key Quotes:
"Private consumption rose 0.4%, also more than expected. The underlying features of the data also brought some good news. The public investment component of GDP contracted 1.4%, so the improvement was due to the private sector. However, some of this is due to decreased imports and accumulated private inventory. "
"The Bank of Japan meets this week, but it is clearly on hold and Governor Kuroda has been fairly adamant about it. Although the bank has pushed the time frame for meeting the 2% inflation target from this fiscal year to next, he has explicitly denied the need for additional stimulus now. This may change going forward, but seems unlikely in the first half of the current fiscal year."
Key Quotes:
"Private consumption rose 0.4%, also more than expected. The underlying features of the data also brought some good news. The public investment component of GDP contracted 1.4%, so the improvement was due to the private sector. However, some of this is due to decreased imports and accumulated private inventory. "
"The Bank of Japan meets this week, but it is clearly on hold and Governor Kuroda has been fairly adamant about it. Although the bank has pushed the time frame for meeting the 2% inflation target from this fiscal year to next, he has explicitly denied the need for additional stimulus now. This may change going forward, but seems unlikely in the first half of the current fiscal year."