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"The trio of increased savings, inequality and debt is
considered to be intertwined in practice and may theoretically
reduce the natural interest rate," Kuroda said in a speech to a
BOJ-hosted academic conference.
As the global economy emerges from the pandemic's initial hit,
the role of central banks will shift from providing liquidity
support to helping companies stay solvent, he said.
"The nature of the policy responses will ... shift from
temporary first aid measures to medium- to long-term structural
policies," Kuroda said. "In this sense, we are seeing a widening
in the scope of issues that central banks should take into
account."
Some central banks are seeking to withdraw crisis-mode policies
as global growth rebounds from last year's slump and inflation
ticks up.
Others, including the BOJ, have pledged to keep monetary policy
ultra-loose as their countries struggle with resurgent infection
rates.
Kuroda said the uneven nature of the global recovery could
aggravate inequality which, together with "increasing worldwide
concern" over climate change, provide fresh challenges to
policymakers.
The health crisis has also led to widespread and rapid
digitalisation, which could increase productivity but may
heighten inequality if the benefits are felt by only a small
fraction of society, he added.
"We are beginning to see the light at the end of this pandemic
tunnel, but the light does not clearly reveal the shape of the
society and economy we are approaching," Kuroda said.
(Reporting by Leika Kihara; Editing by Hugh Lawson)
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