US Treasury Secretary Bessent Tells Japan to Raise Interest Rates: NHK

Published Sep 1, 02:42 AM UTC

US Treasury Secretary Scott Bessent has told Japanese Finance Minister Satsuki Katayama and Bank of Japan Governor Kazuo Ueda that Japan's next policy step should be to raise interest rates, according to a report by Japanese public broadcaster NHK. The report, citing an interview with a US official, indicates direct high-level communication between the United States and Japan on monetary policy direction. This recommendation comes as the Bank of Japan has been gradually moving away from its long-standing ultra-loose monetary policy, having raised rates in recent months for the first time in years. The US Treasury Secretary's public suggestion represents a notable intervention in another country's monetary policy, underscoring the close economic coordination between the two allies. The statement may influence market expectations regarding the pace and timing of future BOJ rate hikes, as Japan continues to navigate inflation and yen volatility.