BOJ’s Asada: Must Watch Cumulative Effect of Rate Hikes on Corporate, Household Borrowing

The emphasis on lags is the tell: Asada is framing the BOJ's next move around evidence that hasn't arrived yet, since policy effects take at least a year to surface. That argues for patience rather than momentum, and it gives the central bank room to hold even as tightening bias persists. For yen-sensitive and rate-sensitive markets, the practical signal is that the hurdle for further hikes sits in realized corporate and household credit data, not in inflation prints alone. Whether the board treats those lagged effects as a reason to pause is the open question.