Bessent Sees Strong Chance of BOJ Rate Hike, Signals Japan's Currency Boost Efforts

US Treasury Secretary Scott Bessent believes Japan's government and central bank will take action to boost the yen, potentially leading to a Bank of Japan interest rate hike in September.

Bessent made these comments at a Group of 20 finance leaders' gathering in Asheville, North Carolina, where he was asked about his expectations for the BOJ's next policy meeting on September 17-18.

'I have information that the market doesn't have, and it's my belief that the Japanese government and the BOJ will do the things that will lead to a stronger yen,' Bessent said, adding that raising interest rates was 'the market's pricing' in.

The yen has been under pressure due to a weak economy and high inflation, causing headaches for Japanese policymakers. Bessent met with BOJ Governor Kazuo Ueda on Sunday and Japanese Finance Minister Satsuki Katayama on Monday, where he called for further rate hikes and fiscal sustainability.