The Bank of Japan said that the population continues to shrink, which means it is difficult to achieve strong growth in overall consumer consumption. Japan's population fell 2.5% in 2025 from five years ago, the biggest drop since records began in 1920. According to an analysis by the Bank of Japan, the decline in consumption does not necessarily mean that the economy is weak enough to prevent subsequent interest rate hikes.

The Bank of Japan said that the population continues to shrink, which means it is difficult to achieve strong growth in overall consumer consumption. Japan's population fell 2.5% in 2025 from five years ago, the biggest drop since records began in 1920. According to an analysis by the Bank of Japan, the decline in consumption does not necessarily mean that the economy is weak enough to prevent subsequent interest rate hikes.