US Treasury Secretary Signals Strong Chance of BOJ Rate Hike in September Amid Yen Weakness

U.S. Treasury Secretary Scott Bessent indicated a strong likelihood of the Bank of Japan (BOJ) raising interest rates in September, expecting action from the Japanese government and central bank to strengthen the yen. This follows a record ¥15.4 trillion ($96.4 billion) market intervention by Japan's Finance Ministry over the past month, aimed at combating the yen's weakness, which has contributed to rising import prices and broader inflation. The BOJ previously raised rates in June, and a September hike could fuel market expectations for quarterly rate increases.