Japan’s economy grows at solid pace in Q1, but Iran war set to upend momentum
Businesstimes News·- Japan's economy grew at an annualized rate of 2.1% in the first quarter, exceeding the market's expected 1.7%. - This growth is now threatened by the energy impacts of the Iranian conflict, with analysts predicting a slowdown in future quarters. - Private consumption increased by 0.3%, while net external demand contributed 0.3 percentage points to growth, despite rising risks from oil price fluctuations and supply disruptions.BOJ holds rates, but Iran war inflation pushes Japan toward hike
MSN·- The Bank of Japan maintained interest rates at 0.75%, but a 6-3 split among board members indicated growing internal pressure for a policy tightening. - The rise in energy costs and inflation risks due to the Iran war has led to increased market expectations for a potential rate hike to 1.0%. - Analysts suggest that the BOJ might implement this hike as early as June if inflationary pressures persist.