Bessent urges BOJ to maintain sound policy, avoid yen volatility

Investing.com -- U.S. Treasury Secretary Scott Bessent called on Bank of Japan Governor Kazuo Ueda to implement sound monetary policy to control inflation expectations and prevent excessive yen volatility, the Treasury Department said Tuesday. During a meeting with Ueda, Bessent expressed strong support for Japan’s efforts to address the yen’s undervaluation and highlighted how the weak currency has contributed to domestic inflationary pressures, according to a Treasury statement. The two officials met Sunday at the G20 finance ministers’ and central bank governors’ meeting in Asheville, North Carolina. Bessent stressed the importance of proper formulation and communication of monetary policy to anchor inflation expectations and avoid excess exchange rate volatility, the Treasury Department said. The comments strengthen expectations for the BOJ to raise borrowing costs at its September 17-18 meeting. A weak yen has increased import prices and broader inflation, raising the cost of living for Japanese households. BOJ Governor Ueda and Japanese Finance Minister Satsuki Katayama attended the two-day G20 finance leaders meeting, which ended Tuesday. This article was generated with the support of AI and reviewed by an editor.