BOJ policymaker Sato explained why she opposed a rate hike at the September meeting and indicated a policy of adjusting the policy rate gradually. She avoided specifying the timing or pace, with no mention of a specific date.
According to Kyodo News, BOJ policymaker Sato indicated that private consumption lacked significant momentum and that, although underlying inflation was rising moderately, its pace had not accelerated recently.
Regarding future rate hikes, she said she viewed current financial conditions as accommodative and supported the policy of adjusting the policy rate gradually. She avoided specifying the timing, saying she wanted to assess developments in consumption and income.
Regarding an appropriate pace for rate hikes, she indicated that she did not believe they should follow a specific schedule, such as once every six months or once every three months.
Regarding the relationship between the government's expansionary fiscal policy and the BOJ's monetary policy, she said appropriate monetary policy could contribute to sustainable economic growth and indicated that she would independently assess the consistency of fiscal and monetary policy.