BOJ Faces Intensifying Pressure for Faster Rate Hikes

The Bank of Japan (BOJ) is facing increased pressure to raise interest rates as US Treasury Secretary Scott Bessent declared that the era of massive stimulus is over. In a recent interview, Bessent stated that recent currency movements were not disorderly, indicating a reduced appetite for fresh market intervention.

Bessent's comments have effectively boxed in the BOJ, which was already expected to raise interest rates in September. However, with inflationary pressures mounting, the central bank is now under pressure to implement a faster pace of rate hikes.

BOJ Governor Kazuo Ueda will participate in a two-day meeting of G20 finance leaders in Asheville, North Carolina, concluding on Tuesday. Markets are focused on potential remarks by Ueda following his participation in this meeting.