A single dissenting vote against the Bank of Japan¡¯s latest interest rate hike shows the time crunch hawks are under to get rates to a more normal level before it¡¯s too late.
Toichiro Asada ¡ª appearing at just his second board meeting ¡ª disagreed with his peers on the biggest risks facing the economy as he voted against raising the benchmark rate to the highest mark since 1995 last week. The first policy board member appointed by Prime Minister Sanae Takaichi, Asada left little doubt about his commitment to monetary stimulus.
The newest member¡¯s action offered a glimpse of what may lie ahead for Gov. Kazuo Ueda¡¯s board. Takaichi already has another reflationist appointee scheduled to join this month after Junko Nakagawa completes her five-year term, and the board¡¯s two most stalwart hawks are scheduled to end their terms in about a year. That will give Takaichi the opportunity to nominate additional members who could significantly shift the tilt of the nine-member group.
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