US Treasury Secretary Scott Bessent said in a Reuters interview that he expects the Bank of Japan to take appropriate action to address yen depreciation. Ahead of the G20 Finance Ministers and Central Bank Governors Meeting, he commented on the BOJ’s policy and also referred to talks between Japan and the United States.
US Treasury Secretary Scott Bessent said the Bank of Japan should take appropriate action in response to yen depreciation, and addressed whether it should consider a series of rate hikes. He pointed out that the yen’s exchange rate has recently been relatively restrained and expressed the view that it was not moving in a disorderly manner.
Scott Bessent spoke in Asheville, North Carolina, the venue for the G20 Finance Ministers and Central Bank Governors Meeting beginning on the 31st. He said he expects to meet during the meeting with Finance Minister Katayama Satsuki (片山 さつき) and Governor Ueda Kazuo (植田 和男). He also explained that the BOJ would not specify what it should do regarding rate hikes that would constitute monetary tightening.
He also expressed the view that Japan’s reflationary policy during the Abe administration had come to an end, cautioning the Takaichi administration and the BOJ. Regarding fiscal policy, he argued that they should wait and see, enjoy the benefits of Abenomics, and continue it.