The second quarter growth data also showed that the economy contracted an annualized 6.8%, the largest decline since the first quarter of 2011 when the economy was rattled by the earthquake and tsunami.
Consequently, some believe the Bank of Japan has room for further stimulus, especially with core inflation at 1.3%, below the central bank’s 2.0% inflation target. The Bank of Japan is scheduled to make an announcement on Wednesday, September 3. Most observers, though, do not expect further monetary stimulus until October.
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Max Chen contributed to this article.