According to a report by Japan's Kyodo News Agency on Wednesday, Bank of Japan's newly appointed member Ayano Sato said that he supports phased interest rate hikes, which shows that even among dovish directors, they are aware of the need to deal with the risk of inflation. Sato was appointed by Prime Minister Takaichi Sanae, who favors a loose monetary policy. She was one of the two directors who voted against the Bank of Japan's interest rate hike resolution in September, and joined the 9-member central bank policy committee in June of this year. In an interview with Kyodo News, Sato said that she voted against interest rate hikes last month because consumption lacked momentum and core inflation had not accelerated. The report quoted her statement: “The current financial environment is still relaxed. I support a phased adjustment of interest rates.” She added that the right time to raise interest rates in the future will depend on consumption and income trends. Sato also said that a fixed pace for future interest rate hikes should not be set.

According to a report by Japan's Kyodo News Agency on Wednesday, Bank of Japan's newly appointed member Ayano Sato said that he supports phased interest rate hikes, which shows that even among dovish directors, they are aware of the need to deal with the risk of inflation. Sato was appointed by Prime Minister Takaichi Sanae, who favors a loose monetary policy. She was one of the two directors who voted against the Bank of Japan's interest rate hike resolution in September, and joined the 9-member central bank policy committee in June of this year. In an interview with Kyodo News, Sato said that she voted against interest rate hikes last month because consumption lacked momentum and core inflation had not accelerated. The report quoted her statement: “The current financial environment is still relaxed. I support a phased adjustment of interest rates.” She added that the right time to raise interest rates in the future will depend on consumption and income trends. Sato also said that a fixed pace for future interest rate hikes should not be set.