This may have its largest effect on the amount of funds an individual household can borrow, more than the effect on the number of households that are eligible for a loan. This, in turn, means that credit growth may be slower than otherwise for a time.
I would just note that, in our recent meetings with central bank colleagues from Asia, they were fully aware of the need for flexibility and the challenges facing them in pursuing that goal. In addition to enhancing flexibility, today I would like to explore another option: the possibility of Asian economies enhancing absorption in their economies. For Japan, demography would aid the adjustment process.