Bessent Urges BOJ to Hike Rates at Sept. 17-18 Meeting Against Weak Yen
Updated
Updated · The Japan Times · Sep 2
Bessent Urges BOJ to Hike Rates at Sept. 17-18 Meeting Against Weak Yen
3 articles · Updated · The Japan Times · Sep 2
Summary
Treasury Secretary Scott Bessent told BOJ Governor Kazuo Ueda he backs “decisive” monetary action to counter yen weakness, according to a Treasury statement issued Tuesday.
The message pressed the BOJ to anchor inflation expectations and curb excessive yen volatility through sound monetary policy, reinforcing Bessent’s recent public calls for higher Japanese rates.
Sept. 17-18 is now the key test: Bessent’s intervention strengthens market expectations that the BOJ could raise borrowing costs at its next policy meeting.
The exchange also signals Washington’s preference for tighter Japanese policy as a way to stabilize the yen rather than tolerate prolonged currency weakness.