BOJ’s Sato Backs Gradual Rate Hikes, Says Consumption Lacks Momentum

Sato's explicit backing for staged rate adjustments matters less for the timing than for the framing: it puts a board voice on record as data-dependent on consumption and income, which are exactly the areas he flags as weak. That combination limits how fast the BOJ can normalize without demand-side evidence, and it keeps yen-sensitive and carry-driven positioning exposed to each incoming consumption print. Whether income growth actually firms enough to give the board cover for the next step is the open question.