Bessent Presses BOJ for Rate Hike to Combat Yen Weakness

US Treasury Secretary Scott Bessent urged Japanese central bankers to take decisive action to combat yen weakness, calling for sound monetary policy and a rate hike this month.

Bessent met with Bank of Japan Governor Kazuo Ueda at the G20 finance ministers' meeting in Asheville, North Carolina, where he emphasized the importance of anchoring inflation expectations and avoiding excessive yen volatility through effective communication of monetary policy.

The US has joined Japan in a rare joint intervention to prevent a selloff in the yen and Japanese government bonds from spilling over into global markets. However, recent moves have failed to put a sustained floor under the sagging currency.

Bessent's comments effectively lock the BOJ into raising rates this month, with many analysts already expecting an increase in September due to growing inflation pressures.