Bank of Japan's dovish dissenting board member signals support for future rate hikes

According to a Wednesday report by Kyodo News, new Bank of Japan board member Ayano Sato expressed support for gradual interest rate hikes, indicating that even among dovish board members, there is an awareness of the need to address inflation risks. Sato was appointed by Prime Minister Sanae Takaichi, who favors loose monetary policy. She was one of two board members who voted against the BOJ's rate hike decision in September and joined the nine-member policy board in June this year. In an interview with Kyodo News, Sato said she voted against the rate hike last month because consumption lacked momentum and core inflation had not yet accelerated. The report quoted her as saying: "The current financial environment remains accommodative, and I support adjusting interest rates in stages." She added that the appropriate timing for future rate hikes will depend on the trajectory of consumption and income. Sato also said that a fixed pace for future rate hikes should not be predetermined.