Japan's GDP Contraction Confirmed, BOJ Rate Hike Expectations Unchanged

Japan's economy contracted 2.3% in Q3, revised from 1.8%, with a 0.6% fall on a quarter-over-quarter basis. The decline was driven by a temporary fall in housing investment and weaker exports. Despite the contraction, the Bank of Japan is expected to raise interest rates to 0.75% from 0.5% later this month, with the benchmark 10-year bond yield staying at a multi-year high of 1.95%.