Bank of Japan policy board member Ayano Sato said firms are increasingly passing higher costs to consumers and the BOJ must guard against potential inflationary effects from yen depreciation. She said monetary policy should focus on inflation while fiscal policy should support households and firms hit by rising prices. Appointed by dovish Prime Minister Sanae Takaichi, Sato declined to comment on the timing or pace of further rate hikes and said the BOJ must watch both downside growth risks and

2026-06-30

Bank of Japan policy board member Ayano Sato said firms are increasingly passing higher costs to consumers and the BOJ must guard against potential inflationary effects from yen depreciation. She said monetary policy should focus on inflation while fiscal policy should support households and firms hit by rising prices. Appointed by dovish Prime Minister Sanae Takaichi, Sato declined to comment on the timing or pace of further rate hikes and said the BOJ must watch both downside growth risks and upside inflation risks.