US Treasury Secretary Bessent said that the Japanese government and the BOJ would take measures to strengthen the yen, adding that he knows information the market does not have. Reports have also emerged that he requested a rate hike from BOJ Governor Ueda Kazuo (植田 和男) and Finance Minister Katayama Satsuki (片山さつき) ahead of the BOJ’s next policy meeting.
In an interview with Bloomberg, US Treasury Secretary Bessent said that the Japanese government and the Bank of Japan could take measures to strengthen the yen, and added that he has information the market does not have. Regarding the effectiveness of yen-buying intervention, he explained that it would not affect the equilibrium level but could send a signal.
Based on NHK reports, BOJ Governor Ueda Kazuo (植田 和男) and Finance Minister Katayama Satsuki (片山さつき), who are visiting the United States, held meetings in succession and requested that the BOJ raise interest rates. They reportedly emphasized to the Japanese side the importance of showing the market the sustainability of fiscal policy and a path toward rate hikes.
The BOJ plans to hold its next monetary policy meeting on 17 and 18 September. Expectations for a rate hike at the meeting are increasing after Governor Ueda Kazuo (植田 和男) referred at a press conference following the July meeting to the possibility of accelerating the pace of rate hikes. In US markets, long-term yields moved, with the US 10-year Treasury yield at one point exceeding 4.75%.