In an interview with Kyodo News, BOJ Policy Board member Sato Ayano (佐藤綾野) said she supported a policy of gradual rate hikes. Meanwhile, she expressed concern about weak personal consumption and avoided mentioning the timing of the next rate hike.
In an interview with Kyodo News, BOJ Policy Board member Sato Ayano (佐藤綾野) indicated her support for a policy of gradually raising the policy rate. The interview was her first solo interview since taking office and reaffirmed her support for the BOJ’s rate-hike policy.
Sato, however, expressed concern that momentum in personal consumption was weak and avoided making specific comments on the timing of the most recent rate hike. While market views remained cautious about the likelihood of further rate hikes, some observers said her comments could influence the direction of BOJ monetary policy.
According to the article, the background to her opposition to a rate hike at the September policy meeting was insufficient strength in personal consumption. Her latest comments reaffirmed her view that rate hikes would contribute to “sustainable economic growth” and emphasized her intention to pursue consistency between fiscal and monetary policy based on independent judgment.
Sato’s appointment under the Takaichi administration and her acknowledgment of the need for rate hikes have drawn market attention to the possibility of a future shift in the BOJ’s policy stance.