BoJ will likely announce more easing at its late-April meeting

According to revised data, Japan GDP expanded by 0.4% q/q (1.5% annualised) last quarter, less than the preliminary estimate of a 0.6% q/q increase. (Data released on Monday.) 

Admittedly, this was entirely due to a 0.2pp drag from inventories, whereas the initial estimate had shown a 0.2pp boost. In fact, private consumption expanded by 0.5% q/q, more than the preliminary estimate of a 0.3% q/q rise. 

Capital Economics notes in a report on Monday:

• Recent data have shown strong gains in industrial production and exports. But we still think that the BoJ will announce more easing at its late-April meeting in order to signal its determination to reach the 2% inflation target.