BOJ Rate Hike in September? US Treasury Secretary Sends Signal

US Treasury Secretary Scott Bessent believes that the Japanese government and the Bank of Japan (BOJ) will take steps to strengthen the yen, which has slipped back toward weakness. This move is seen as a signal that the BOJ may raise interest rates at its September policy meeting.

Bessent made these comments during an interview with CNBC on Monday, ahead of the G20 finance ministers' meeting in Asheville, North Carolina. When asked about the possibility of a BOJ rate hike, Bessent replied that 'market participants are currently pricing in a rate increase.'

This interpretation was widely seen as lending weight to the possibility that the BOJ will raise rates at its September monetary policy meeting, which is scheduled for September 17-18. The remarks were made as the yen has recently resumed its slide, and Bessent's comments were seen as reinforcing market expectations.