Bessent Backs BOJ Chief: Yen to Stabilize with Lower Inflation

US Treasury Secretary Scott Bessent has expressed confidence in Bank of Japan Governor Kazuo Ueda's ability to make decisions that benefit Japan's economy. In an interview with NHK, Bessent stated that he believes Ueda will 'do what is best' for the country.

Bessent attributed part of Japan's inflation uptick to a weak yen and energy prices, noting that as these factors improve, Japan's inflation rate will slow down. He predicts this will create a 'virtuous cycle' between Japan and the yen, allowing them to recover.

This optimism follows previous comments from Bessent calling for higher Japanese interest rates. His remarks have heightened expectations of an interest rate hike by the BOJ at its next policy meeting on September 17 and 18.