Bessent says he is sure BOJ chief Ueda will ‘do what is best’
The remarks follow a series of comments from the US treasury secretary in the past calling for higher Japanese rates.
US Treasury Secretary Scott Bessent expressed confidence in Bank of Japan Governor Kazuo Ueda to make decisions in the best interest of Japan's economy, according to NHK. Bessent attributed part of the recent inflation uptick in Japan to a weak yen and high energy prices. He projected that as energy prices decline and the yen's excessive weakness is addressed, Japan's inflation will decelerate, initiating a positive feedback loop for both the country and its currency.
These statements, following several of Bessent's prior calls for higher Japanese interest rates, bolster the likelihood of a BOJ rate increase during its upcoming meeting on September 17 and 18. Notably, the US and Japan recently initiated a rare joint yen-buying intervention and vowed to pursue additional measures to strengthen the currency, demonstrating their dedication to curbing the yen's descent to 40-year lows.
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