Clear signs of economic recovery yet to appear in Japan

Tricky task: The BoJ’s headquarters in Tokyo. Economists say the central bank has to still be cautious about the country’s economy. — AFP

Tokyo: Japan’s economy showed scant sign of a clear recovery with its narrower-than-first-estimated contraction leaving plenty of reason for continued caution among policymakers as the Bank of Japan (BoJ) eyes the timing of its next interest rate hike.

Gross domestic product (GDP) shrank at an annualised pace of 1.8% in the three months through March, the Cabinet Office said yesterday, compared with a 2% retreat reported in preliminary data. Economists had forecast the updated figures would be unchanged.