BOJ Official Asada Signals Support for Rate Hike if Demand Drives Inflation on July 8

According to Jin10, Bank of Japan policy board member Asada said on July 8 he must see signs of demand-driven inflation before supporting a rate hike, while noting that cost increases are being passed through at a "relatively fast pace," suggesting possible future support for tightening. Asada, appointed by dovish PM Takayama, was the sole dissenter when the central bank raised rates to a 31-year high of 1% in June. He emphasized that sustainable achievement of the 2% inflation target—driven by wage growth and demand expansion—is a key precondition for future rate increases, though current conditions do not yet justify tightening.
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