Japan’s economy rebounds strongly


The increase in gross domestic product compared with a median market forecast for a 2.1% gain. — Reuters

TOKYO: Japan’s economy expanded by a much faster-than-expected annualised 3.1% in the second quarter, rebounding from a slump at the start of the year thanks to a strong rise in consumption and backing the case for another near-term interest rate hike.

The Bank of Japan (BoJ) had forecast that a solid economic recovery will help inflation sustainably hit its 2% target, and justify raising interest rates further after it hiked them last month in its continued quest to exit years of massive monetary stimulus.

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