Bessent Pressures Japan's BOJ to Hike Rates Faster Amid Yen Weakness

The US Treasury Secretary Scott Bessent has signaled that Japan's Bank of Japan (BOJ) should respond to the yen's weakness through higher interest rates, rather than another market operation.

This comes after a rare joint intervention by Washington and Tokyo to support the yen, which was met with limited success. Bessent indicated that further action may depend on Japan addressing the underlying causes of the currency's weakness.

The BOJ is already expected to raise interest rates in September due to rising inflationary pressures, but Bessent's comments increase pressure on Governor Kazuo Ueda to signal a faster pace of monetary tightening.