BOJ Governor Hints at Rate Hike in September Amid Inflation Concerns

The Bank of Japan (BOJ) governor Kazuo Ueda hinted at a potential interest rate hike in September, citing concerns over inflationary risks. This comes after US Treasury Secretary Scott Bessent met with Ueda and urged him to take 'decisive' monetary steps to combat the weak yen.

Ueda emphasized that the BOJ will debate raising interest rates, including in September, to assess whether the likelihood of its economic scenario materializing is heightening and if upside price risks are increasing. The central bank has already raised rates five times since the start of the year.

Hawkish BOJ board member Hajime Takata separately argued that the BOJ should raise rates nimbly in response to inflationary pressures, rather than adhering to a fixed semi-annual pace.