BOJ's dovish dissenter signals support for future rate hikes

Ayano Sato, the newest Bank of Japan policymaker appointed by Prime Minister Sanae Takaichi, has expressed support for future interest rate increases. In an interview with Kyodo news agency, Sato, one of two dissenters to the central bank's September decision to raise rates, stated she supports a staged approach to interest rate adjustments due to current accommodative financial conditions.

Sato, who joined the nine-member BOJ board in June, said the timing for future hikes would depend on developments in consumption and income. She also noted that underlying inflation is nearing the 2% target set by the BOJ. Sato's dissent in September, along with another new board member Toichiro Asada, has been seen as a potential sign that the BOJ's rate-hike plans may continue to face opposition from the Takaichi administration.