Yen Weakness Puts Pressure on BOJ for Faster Tightening

US Treasury Secretary Scott Bessent has put pressure on Japan to adopt a tougher monetary and fiscal policy stance, following a joint intervention by Washington and Tokyo to support the yen.

Bessent's comments come after the recent weakness of the Japanese currency, which has contributed to higher import costs and inflation for Japanese households.

The BOJ is widely expected to raise interest rates in September, but Bessent signaled that further action may depend on Japan addressing the underlying causes of the yen's weakness.

Bessent met with BOJ Governor Kazuo Ueda at the G20 finance leaders' meeting and discussed the need for further rate hikes to address inflationary pressures.