BOJ's Sato signals support for future rate hikes, Kyodo reports

TOKYO, October 7 - Bank of Japan board member Ayano Sato indicated her support for future interest rate hikes, according to Kyodo news agency. Appointed by Prime Minister Sanae Takaichi, Sato is one of two dissenters to the central bank's decision to raise rates in September. In an interview with Kyodo, Sato explained that she opposed the September hike because consumption was weak and inflation was not increasing.

She believes that interest rates should be adjusted in stages, as the current financial conditions are accommodating. Sato emphasized that the timing of future rate hikes would depend on developments in consumption and income, and there should not be a predetermined pace for these hikes.