Bessent urges BOJ chief to conduct 'sound' policy to avoid yen volatility

U.S. Treasury Secretary Scott Bessent urged Bank of Japan Governor Kazuo Ueda to implement sound monetary policy in order to stabilize inflation expectations and prevent excessive fluctuations in the value of the Japanese yen. During a meeting at the G20 finance ministers and central bank governors meeting in Asheville, North Carolina, Bessent expressed strong support for Japan's efforts to address the undervaluation of the yen, which has been contributing to domestic inflationary pressures.

The weak yen has been causing import prices to rise, putting pressure on Japanese households' cost of living. Bessent's comments reinforce the case for the Bank of Japan to raise interest rates at its next meeting on September 17-18, following recent hawkish communication from the central bank.