Katayama Denies Discussing Rate Hikes with Bessent Amid Yen Decline

Japanese Finance Minister Satsuki Katayama denied that she had discussed rate hikes with US Treasury Secretary Scott Bessent during their recent meeting. The discussion came after Bessent publicly stated his expectation of a Japanese interest rate hike to support the yen, which has been declining in value.

Katayama stressed that monetary policy is left up to the Bank of Japan and emphasized the importance of an orderly market for the yen for global financial stability. She met with her US counterpart on the sidelines of the G20 finance meeting in North Carolina, their first face-to-face since July's joint intervention to prop up the Japanese unit.

Bessent had told CNBC that he expected Japan to take steps to boost the currency, including rate hikes, which some investors have begun pricing in for September. However, Katayama maintained that there was no discussion about rate hikes during their meeting.