Bessent Predicts BOJ Rate Hike Will Strengthen Yen
US Treasury Secretary Scott Bessent believes Japan's government and central bank will take action to strengthen the yen, possibly through interest rate hikes. In an interview with CNBC on Monday, he stated that he has information not available to the market and thinks the Bank of Japan (BOJ) will do what leads to a stronger yen.
When asked if this meant raising interest rates, Bessent replied, 'I think the market's pricing that in now.' This reinforces market expectations that the BOJ will raise rates at its next policy meeting in September.
The yen gained against the dollar after Bessent's comments. He met with BOJ Governor Kazuo Ueda on Sunday and Japanese Finance Minister Satsuki Katayama on Monday, according to a senior US Treasury Department official.