BOJ's Sato Backs Further Gradual Rate Hikes, Flags Weak Consumer Spending

Ayano Sato, a Bank of Japan policy board member, said she supports further gradual interest-rate increases. She also raised concerns about the weak recovery in consumer spending.

Walter Bloomberg reported on October 6 that Sato said a gradual tightening of monetary policy could contribute to sustainable economic growth. She did not specify when the next rate increase might come.

Sato voted against a rate hike at the Bank of Japan's monetary policy meeting in September. She said that decision reflected concerns that consumer spending was not showing sufficient momentum.

While agreeing that further tightening may be needed, Sato said any policy adjustment should take domestic consumption trends into account.