Bank of Japan Policy Board member Ayano Sato said the current financial environment remains accommodative and that she supports a policy of adjusting the policy interest rate in stages. Sato's interview with the media was her first since taking office in June, and she spoke to Kyodo News and the Asahi Shimbun. On future rate hikes, she said it would be best to pick timing based on a range of data so as not to kill the economy, and that she wants to confirm trends in consumption and income. As for the pace of rate hikes, she said she does not think it should follow a specific schedule such as once every six months or once every three months. At the September monetary policy meeting, Sato cast a vote against a rate hike, along with fellow board member Toichiro Asada, who was also appointed under the Takaichi administration.
Sato backs gradual BOJ rate hikes, signaling higher future policy rates and upward pressure on JGB yields (bond prices fall).
BOJ board member Sato supports gradual rate hikes, a policy signal that strengthens the yen versus the dollar.
