Katayama says she had no talks on Japan rate hikes with Bessent

Japanese Finance Minister Satsuki Katayama affirmed that Japan's monetary policy remains under the control of the Bank of Japan, despite US Treasury Secretary Scott Bessent's public expectations of a rate hike. This assertion came during Katayama's meeting with Bessent off the sidelines of the G20 finance meeting in North Carolina, their first in-person meeting since July's joint intervention aimed at stabilizing the Japanese currency.

Katayama emphasized the necessity of a stable yen market for global financial stability, attributing this to coordinated efforts by Japan and the US. When asked if Bessent had called for rate hikes, Katayama confirmed there was no such discussion, reiterating that monetary decisions are solely within the Bank of Japan's purview.

Bessent, in response, acknowledged the market's pricing of potential BoJ actions, including a potential September hike, citing undisclosed market information. He expressed confidence in Japan's government and BoJ's actions to strengthen the yen, which has since recovered from its weakened position.