0315 GMT - Japan's GDP print suggests wage growth and household spending will continue to drive the economy, but that doesn't ensure a BOJ rate hike, ING's Min Joo Kang says. The economy shrugged off U.S. tariffs in 2Q, but ING sees a contraction ahead as export front-loading fades and residential investment is curbed by stricter building construction rules. "We now expect a 0.3% contraction in 3Q vs -0.1% previous estimate." PM Ishiba's exit also raises macro policy risk. That said, the economy is likely to skirt recession on likely robust private consumption, while wage growth and easing inflation buoy consumer purchasing power. ING lifts its 2025 GDP growth view to 1.1% from 0.9% and sticks to an October rate hike for now, despite higher uncertainty. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

September 07, 2025 23:15 ET (03:15 GMT)

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