Japan's economy skids, complicating BOJ's rate hike plans

From channelnewsasia.com

Japan's economy contracted in the first quarter, squeezed by weaker consumption and external demand and throwing a fresh challenge to policymakers as the central bank looks to lift interest rates away from near-zero levels. Preliminary gross domestic product (GDP) data from the Cabinet Office on Thursday showed Japan's economy shrank 2.0 per cent annualised in January-March from the prior quarter, faster than the 1.5 per cent drop seen in a Reuters poll of economists. Downwardly revised data showed GDP barely grew in the fourth quarter. The reading translates into a quarterly contraction of 0.5 per cent, versus a 0.4 ... (full story)