Japans economic growth likely accelerated in Q2, BoJ to continue with accommodative policy in near future

The Japanese economic growth is expected to have accelerated in the second quarter. Lately, the Japanese economy has built some momentum, although on a relative basis growth continues to be weaker in the nation than in most other advanced countries.

An improved global growth environment has given a stimulus. Japan’s merchandise export volumes grew 4 percent year-on-year in June.

Industrial production grew 4.9 percent in the same period. According to a Wells Fargo research report, the Japanese economy is expected to have grown 2.2 percent in the second quarter. If the second quarter economic growth comes in positive as is anticipated, it would be the sixth straight quarter of positive growth – the first time this has happened in Japan in over a decade, stated Wells Fargo.

However, Japan’s economic growth continues to be far from robust, and with consumer prices essentially flat in the past year, the Bank of Japan is expected to remain committed to its accommodative monetary policy measures in the near future, added Wells Fargo.

At 22:00 GMT the FxWirePro's Hourly Strength Index of Japanese Yen was neutral at 34.5035, while the FxWirePro's Hourly Strength Index of US Dollar was bearish at -75.4199. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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