Bessent Sees Strong Chance of September Rate Hike from BOJ
US Treasury Secretary Scott Bessent believes Japan's government and central bank will take action to strengthen the yen, indicating a strong chance of a Bank of Japan interest rate hike in September.
Bessent made this statement on Monday (Aug 31), following his comments on Sunday when he told Reuters he expects BOJ governor Kazuo Ueda to 'do the right thing' on monetary policy to combat yen declines.
When asked if raising interest rates was part of the plan, Bessent replied, 'I think the market's pricing that in now.'
The yen gained against the US dollar after Bessent's comments, with the US dollar standing at 159.75 yen on Monday, close to the 160 mark that signals a higher chance of yen-buying intervention.
Bessent met Ueda and Japanese Finance Minister Satsuki Katayama recently, calling for further rate hikes and fiscal sustainability in Japan.