According to Jinshi, Japan's economy has once again experienced negative growth after one quarter. Rakuten Securities Economic Research Institute Chief Economist Nobuyasu Atago said that the Bank of Japan cannot ignore this GDP data, and it is not an acceptable situation for them to raise interest rates again. He predicted that the central bank may need to wait for the second quarter GDP data to be released in August before taking action.
Toshihiro Nagahama, chief economist at Dai-ichi Life Research Institute, also said that the economy declined more than expected in the first quarter of this year. In the case of insufficient total demand, it will be difficult for Japan to implement a tight financial and fiscal policy in the short term.
