Overview
- The Cabinet Office on Monday revised January–March real GDP to an annualized 1.8 percent, down from a preliminary 2.1 percent estimate.
- Business capital spending was the main drag, falling 0.7 percent in the quarter after an earlier reading showed a small rise.
- Nominal GDP was trimmed to a 2.5 percent annualized gain and domestic demand grew only modestly with private consumption up about 0.3–0.35 percent.
- The government finalised a $19 billion supplementary budget to shield households from higher fuel costs caused by disruptions linked to the Strait of Hormuz.
- Markets and officials say the BOJ is likely to raise rates this month if the Middle East conflict does not sharply escalate, which would push energy prices higher and worsen inflation and corporate margins.