BOJ Dissenter Sato Backs Gradual Rate Hikes Despite September Vote Against 1.25% Policy Rate

Bank of Japan board member Ayano Sato signaled support for gradual rate hikes, easing market perceptions of an entrenched dovish bloc. In comments reported by Kyodo News, Sato clarified that her vote against September's rate hike from 1.00% to 1.25% was over timing and speed rather than overall policy direction. She noted that financial conditions remain accommodative and that rising oil costs skew inflation risks to the upside, even as fragile domestic demand requires attention. Her remarks reinforce expectations of continued tightening, aligned with consensus forecasts projecting rates at 1.5% by March.