Bessent-Takaichi split on BOJ risks undermining joint yen rescue
The U.S. treasury secretary believes tightening is crucial to address the weakness in Japan's currency but the prime minister has long been wary of taking interest rates too high.
Despite the U.S. and Japan demonstrating uncommon cooperation to bolster the yen, discord between U.S. Treasury Secretary Scott Bessent and Prime Minister Sanae Takaichi regarding the Bank of Japan's stance threatens their unified efforts. Over the past year, Bessent has advocated for monetary tightening as a means to counteract Japan's weakening currency situation.
Conversely, Takaichi has maintained reservations about elevating interest rates excessively and too swiftly, fearing it could stifle an economic recovery that has captivated global investors. Since Takaichi assumed leadership of the BOJ last October, the institution has lifted its rates twice, yet the benchmark rate remains persistently low at 1%.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
