BOJ signals low hopes for consumer spending as population falls

What happened: The Bank of Japan said in its quarterly outlook report that a shrinking population makes robust growth in aggregate private consumption difficult to expect as a trend. Key numbers: Population fell 2.5% in 2025 from five years earlier, the fastest decline on record since 1920. Private consumption is about half of Japan's economy. Why it matters: The BOJ's analysis suggests a drop in consumer spending alone may not signal enough weakness to derail further rate hikes, with a move widely expected in December.

The Bank of Japan said in its quarterly outlook report that a shrinking population makes robust growth in aggregate private consumption difficult to expect as a trend.

The BOJ's analysis suggests a drop in consumer spending alone may not signal enough weakness to derail further rate hikes, with a move widely expected in December.