Data from the
The headline figure was not worse as the 7.1% decline expected by economists and followed the downwardly revised 6.1% expansion in the first quarter (originally 6.7%).
The reading marked the country's worst decline since the earthquake and tsunami in 2011, due in large part to a sharp decline in consumer spending following the implementation of a consumption tax hike in April.
On an annualized quarterly basis, GDP dipped 1.7% - a smaller drop than the 1.8% contraction forecast. This followed the downwardly revised 1.5% increase in the previous three months.
Meanwhile, minutes from the central bank's recent meeting showed that members of the
The monetary policy put in place is having the intended results, the bank added - although a decline in demand has been observed following the consumption tax increase.
The yen rose to 136.60 against the euro, 171.77 against the pound and 112.59 against the Swiss franc, from early lows of 136.75, 171.94 and 112.72, respectively and held steady thereafter.
Looking ahead, German consumer price index and wholesale price index for July are due to be released.
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