Bessent's Intervention Pushes BOJ Rate Hike in September

U.S. Treasury Secretary Scott Bessent's recent comments have raised questions about Washington's influence over Japan's monetary policy.

Bessent has been promoting a joint intervention in the currency markets by Tokyo and Washington, which aims to shore up the battered yen.

In an interview with CNBC, Bessent urged Japan to follow intervention with 'policy and fundamentals' to address what he saw as a substantial undervaluation of the yen.

The BOJ has historically come under political pressure to fend off external shocks, such as volatile yen moves, with monetary policy. The law grants the central bank independence from political interference but also requires close coordination with the government's economic policy.

Analysts polled by Reuters expect the BOJ to raise rates again by December and possibly as soon as October. Hiking in September could fuel market bets that the BOJ will raise rates once every quarter, rather than the current speed of roughly twice a year.