Drop in Japan's July household spending less than expected; jobless rate at 21-year low

Tokyo

JAPANESE household spending fell less than expected in July and the jobless rate hit a two-decade low, offering some hope for policymakers battling to pull the world's third-largest economy out of stagnation.

But with the economy barely growing and inflation sliding further away from the Bank of Japan's (BOJ) 2 per cent target, a majority of economists expect the bank to ease further next month, when it conducts a comprehensive review of the effects of its existing stimulus programme.