BOJ Rate Hike Tied to Currency Alliance with US

The Bank of Japan's decision to raise interest rates was influenced by a 'currency alliance' between the US and Japan, according to recent developments.

A meeting between U.S. Treasury Secretary Scott Bessent and Bank of Japan Governor Kazuo Ueda in August spurred policymakers to move faster on rate hikes.

Bessent expressed support for 'decisive' action to shore up the yen during their discussion, which took place just before the BOJ's decision to raise interest rates three months after its last hike.