U.S. Treasury Secretary Bessent Signals BOJ Rate Hike in September
U.S. Treasury Secretary Scott Bessent expressed confidence that Japan's government and the Bank of Japan (BOJ) will take steps to strengthen the yen, including a potential rate hike at its next policy meeting in late September. His comments reinforced market expectations for an increase after the BOJ raised rates in June. The remarks came during G20 finance meetings in Asheville, North Carolina. Bessent noted that he has information not yet reflected by markets and suggested that policymakers are preparing to act more aggressively than previously expected. Analysts suggest a September hike could shift market expectations toward quarterly rate increases from the BOJ. A weak yen has contributed to rising import prices and inflation in Japan, complicating policy decisions. The dollar traded near 159.73 yen after Bessent's comments, close to levels that historically prompt intervention. While a joint U.S.-Japan currency intervention failed earlier this month to stabilize the yen, Bessent indicated Washington is not currently inclined toward further action.
Topics: BOJ rate hike expectations U.S.-Japan monetary policy coordination yen