Tokyo: Japan faces unforeseen risks in guiding economic policy as its population of about 126 million ages and declines, the governor of its central bank said on Thursday.
Bank of Japan Gov Haruhiko Kuroda told fellow financial leaders that policies must be devised to prevent the shrinking population from hindering economic growth.
Since taking his post in April 2013, Kuroda has flooded Japan’s economy with cash through central bank asset purchases to help fight deflation and keep the economy growing. The BOJ also imposed a negative interest rate policy to keep lending costs ultralow in the longer term.
Japan’s population began shrinking several years ago and is rapidly aging. That has discouraged companies from investing and hiring within Japan.