New Bank of Japan board member Ayano Sato said the country¡¯s inflation views aren¡¯t very strong yet, suggesting her tilt toward accommodative policy as an appointee of Prime Minister Sanae Takaichi.
¡°While we may observe some risk of inflation overshooting, I do not believe that an inflationary norm has yet become firmly established,¡± Sato said at her inaugural news conference Tuesday in Tokyo. She refrained from commenting on her policy views.
Sato begins her five-year term just two weeks after the BOJ raised its benchmark interest rate to the highest level in 31 years. Speaking soon after the yen slid to its lowest level against the dollar since 1986, she noted both pros and cons of a weak currency, adding that high foreign-exchange volatility isn¡¯t desirable and that policymakers need to watch its impact on prices.
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