BOJ's Sato Advocates Gradual Rate Hikes Amid Weak Consumer Spending

Ayano Sato, a member of the Bank of Japan's policy board, has expressed support for further gradual interest-rate hikes. She believes that a gradual tightening of monetary policy could help achieve sustainable economic growth. However, Sato highlighted concerns about the weak recovery in consumer spending, which remains a key consideration for future policy adjustments.

Sato did not specify the timing of the next rate increase, emphasizing the need to monitor domestic consumption trends closely. She had previously voted against a rate hike at the Bank of Japan's September monetary policy meeting, citing insufficient momentum in consumer spending as her reason.

According to a report by Walter Bloomberg on October 6, Sato acknowledged that further tightening may be necessary but stressed the importance of aligning policy decisions with consumption patterns. Her stance reflects a cautious approach to balancing economic growth with the need for stable monetary policy.