Japan's Q2 real GDP preliminary rose 0.3% QoQ (annualized 1.1%), missing forecasts of 0.5% QoQ (2.0% annualized), data showed on Monday. The shortfall complicates the Bank of Japan's path to further tightening: private consumption was flat and business investment contracted sharply, signalling private-sector caution that could prompt a more cautious BOJ stance at the next meeting despite elevated PPI and CPI that keep pressure on policymakers. A weaker growth profile raises downside risk for the

Japan's Q2 real GDP preliminary rose 0.3% QoQ (annualized 1.1%), missing forecasts of 0.5% QoQ (2.0% annualized), data showed on Monday. The shortfall complicates the Bank of Japan's path to further tightening: private consumption was flat and business investment contracted sharply, signalling private-sector caution that could prompt a more cautious BOJ stance at the next meeting despite elevated PPI and CPI that keep pressure on policymakers. A weaker growth profile raises downside risk for the yen if markets scale back September hike odds, and could push JGB yields lower as near-term tightening expectations fade; external demand partly offset the weakness but is unlikely to reverse the overall soft momentum.