BOJ's Sato supports phased rate hikes as conditions accommodative: Kyodo
Bank of Japan board member Ayano Sato said she supports the idea of adjusting interest rates in stages, adding that current financial conditions are accommodative. She was one of two dissenters to the BOJ's September rate hike, having voted against it due to concerns about consumption momentum and underlying inflation. Sato indicated that the timing of future hikes would depend on developments in consumption and income.
(Adds detail in paragraphs 3-5) By Leika Kihara TOKYO, Oct 7 (Reuters) — Bank of Japan board member Ayano Sato said she supports the idea of raising interest rates in several stages as current financial conditions are accommodative, Kyodo news agency reported on Wednesday. Appointed by dovish Prime Minister Sanae Takaichi, Sato was one of two dissenters to the BOJ's decision to raise interest rates in September. She joined the nine-member board in June. In the interview with Kyodo, Sato said she decided to vote against last month's rate hike because consumption lacked momentum and underlying inflation was not picking up pace.
"I support the idea that interest rates should be adjusted in stages, as current financial conditions are accommodative," Sato was quoted as saying, adding that the appropriate timing of future rate hikes would depend on developments in consumption and income. Sato also said there should not be any pre-set pace for future rate hikes, according to Kyodo. net)