Japan reviews the decrease in the GDP in the Q4, which complicates the interest rate expectations in BOJ

Japanese economic growth slowed to 2.2 % year on an annual basis in the fourth quarter, which complicates the central bank’s issue to raise the interest rate in the short term.

The revised data came in lower expectations than the intermediate economists Initial estimate of 2.8 % growth.

On a quarter to a quarter, GDP expansion is 0.6 %, compared to 0.7 % growth in initial data The revised cabinet office data were released last month.

The Bank of Japan is likely to maintain the price of policy at the next policy meeting from 18 to 19 March. Reuters mentioned. However, the price plate can discuss another price rise as soon as possible, due to concerns about the inflationary pressure resulting from wage gains and stubborn height in food costs.

Japanese Prime Minister Shijo Ishiba said on Monday The central bank was about to achieve the goal of inflation by 2 %. “The Bank of Japan takes different steps to achieve stable prices,” he said.

Since the Central Bank sought to normalize the super-monetary policy last year, it raised short-term interest rates by a quarter of a percentage to 0.5 % in January- Its higher since the depth of the global financial crisis in 2008.

Governor of the Bank of Japan, Kazu Oda and Other members of the price status board Ownership It indicates more prices If inflation moves towards the target of inflation by 2 %.

Government bond returns for 10 years in the country It has recently increased to its highest levels since October 2008Amid the continuous inflation in the country, global sale in bonds, as well as the Central Bank’s comments that it will continue to have the expiration of the purchases of Japanese government bonds.

Eflation in Japan has He remained over the Boj 2 % goal for 34 months in a rowWith the latest number in January reaches the highest level in two years of 4 %.

The so -called “basic” inflation rate, which raises the prices of both fresh foods and energy and is closely monitored by BOJ, rose slightly to 2.5 % in January, reached its highest rate since March 2024.

Separately, BOJ is scheduled to issue companies’ price index for January on Wednesday, which measures the prices of goods companies that receive each other. The scale is expected to appear by a 0.1 % decrease on a monthly basis, according to a Reuters poll, while jumping by 4.0 % from the previous year.

– CNBC Lim Hui Jie contributed to this report.