Forex
Bessent and Ueda Agree: Abenomics Has Reached Its End
US Treasury Secretary Bessent has made it clear that he believes 'Abenomics' may have reached its end, hinting at support for the Bank of Japan's rate hikes to stabilize the yen.
In a meeting with BOJ Governor Kazuo Ueda during the G20 summit, market expectations point to a consensus on addressing the yen's undervaluation and accelerating rate hikes, fueling speculation of a September rate hike in Japan.
The neutral interest rate indicator for Japan is now close to the 3% threshold, with the 5-year forward OIS rate at 2.97%, a level rarely seen in decades.