Japan’s economic growth trounced expectations in the fourth quarter, surprising economists and the market and increasing the odds of interest rates being upped sooner.

In the October-December period, the country's gross domestic product grew by an annualized 2.8%, far more than a 1% forecast by a Reuters poll.

It was the third consecutive quarter in positive territory. In the July-September period, the GDP increased at an annualized rate of 1.7%, and that followed a 3% increase in the second quarter.