Japan Q2 GDP Misses Forecast, Clouding BOJ Rate Outlook

Japan’s Q2 GDP grew 0.3% q/q, below the 0.5% forecast, while private consumption was flat and capital spending fell 1.2%. Weak domestic demand may limit the BOJ’s room to hike, though sticky inflation keeps September-October tightening expectations alive. Traders should watch USD/JPY for policy repricing.