Bank of Japan Governor Haruhiko Kuroda said on Saturday steady interest rate hikes by the Federal Reserve were "basically good" for the world economy, shrugging off concerns that higher U. S. rates could hurt Asian economies by triggering capital outflows. Kuroda, however, was more cautious about the risks
Bank of Japan Governor Haruhiko Kuroda said on Saturday steady interest rate hikes by the Federal Reserve were “basically good” for the world economy, shrugging off concerns that higher U. S. rates could hurt Asian economies by triggering capital outflows.
Kuroda, however, was more cautious about the risks posed by escalating trade tensions, which he described as of a “rather unusual” scale and a “new development” for the global economy.
He also said an ageing population could pose structural challenges for central banks, as it undercuts their economies’ growth potential and require them to use more monetary firepower than before to reflate growth.
The International Monetary Fund’s steering committee warned earlier on Saturday that tighter financing conditions were among risks that could affect many emerging and developing countries.
