BOJ Governor Ueda Kazuo expressed an intention to discuss a rate hike, including at the next meeting, with discussions centered on a proposal to consider raising the current rate level while assessing upside inflation risks. Meanwhile, U.S. Treasury Secretary Scott Bessent said that the current era is one of Takaichinomics and called for continued monetary-policy normalization.
BOJ Governor Ueda Kazuo said at a press conference following the G20 meeting of finance ministers and central bank governors that the BOJ intends to consider raising its policy rate, including at its next monetary policy meeting, scheduled for 17 and 18. He said discussions would center on raising the rate from its current level of around 1% to around 1.25% while assessing upside inflation risks.
Governor Ueda emphasized that the BOJ would “engage in thorough discussions at every meeting, including the next one,” and indicated that it would conduct monetary policy while taking upside inflation risks into account. He also said that he had held a meeting with U.S. Treasury Secretary Scott Bessent on 30 August and that they had had useful discussions.
At a press conference following the G20 meeting, Secretary Bessent pointed to the achievements of Abenomics and asserted that “this is the era of Takaichinomics,” calling for continued monetary-policy normalization. The U.S. Treasury Department said that Secretary Bessent had emphasized the appropriateness of the BOJ’s policy changes and explanations.
The BOJ raised its policy rate to around 1.0% at its June meeting and left it unchanged in July. The prevailing market view is that the BOJ will deliver an additional rate hike at its September meeting, while the interest-rate differential between Japan and the United States and the weak yen remain key market focuses.