Bessent Presses BOJ for Rate Hikes to Combat Yen Weakness
US Treasury Secretary Scott Bessent urged Bank of Japan Governor Kazuo Ueda to take decisive monetary steps to combat yen weakness, according to a statement from the Treasury Department.
The meeting between Bessent and Ueda took place on Sunday at the G20 finance ministers' and central bank governors' meeting in Asheville, North Carolina. Bessent emphasized the importance of sound formulation and communication of monetary policy to anchor inflation expectations and avoid excessive yen volatility.
Bessent also expressed strong support for Japan's decisive market and monetary steps to address the substantial undervaluation of the yen and noted its role in contributing to domestic inflationary pressures in Japan. The BOJ is expected to raise interest rates at its next meeting on September 17-18, following a recent spike in wholesale inflation due to rising import costs from a weak yen.