Bank of Japan policy board member SATO told KYODO she supports raising interest rates in stages given currently loose financial conditions. She said she opposed last month’s rate increase because consumption lacks momentum and underlying inflation has not clearly risen. SATO added that the timing of further hikes should depend on developments in consumption and income and that future increases should not follow a fixed cadence.

2026-10-07

Bank of Japan policy board member SATO told KYODO she supports raising interest rates in stages given currently loose financial conditions. She said she opposed last month’s rate increase because consumption lacks momentum and underlying inflation has not clearly risen. SATO added that the timing of further hikes should depend on developments in consumption and income and that future increases should not follow a fixed cadence.