Dovish BOJ policymaker Asada pushes back against early rate hike
FILE PHOTO: The Bank of Japan’s (BOJ) new board member Toichiro Asada attends his inaugural press conference at BOJ headquarters in Tokyo, Japan, April 1, 2026. REUTERS/Issei Kato/File Photo
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NAGASAKI, Japan, Nov 12 : Dovish Bank of Japan policymaker Toichiro Asada pushed back against calls within the board for a near-term interest rate hike, arguing on Thursday that premature rate hikes could hurt growth and push down underlying inflation.
While an overshoot of inflation above the BOJ’s 2 per cent target could have adverse effects on the economy, there was also a risk the effect of past and future rate hikes may weigh on economic activity and underlying inflation, Asada said in a speech to business leaders in Nagasaki, southern Japan.
Welcoming data showing real wages turned positive since the turn of 2026, Asada said growth and consumption have lacked momentum.
“I believe the recent price increases have not necessarily been driven by demand factors,” said Asada, who dissented on the BOJ’s decisions to raise interest rates in June and September.
“In this sense, I consider it necessary for the Bank to give due consideration to the pace of any policy rate hikes,” he said, stressing the need to avoid cooling growth with too-fast rate hikes.
Source: Reuters
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