US Treasury’s Bessent Says Yen Stability Hinges on BOJ Policy Continuity
US Treasury Secretary Scott Bessent signaled confidence in the Japanese yen's eventual stabilization, contingent on the Bank of Japan maintaining a disciplined policy approach. The currency recently slid to an eight-month low of 153.27 against the dollar, reflecting market skepticism about imminent rate hikes. Bessent refrained from direct commentary on the yen's valuation or Governor Kazuo Ueda's upcoming October 30 policy decision, but endorsed Ueda as "very capable."
The Treasury had criticized the BOJ's sluggish inflation response in August, but Bessent now adopts a measured tone. He asserts that adherence to a "proper" monetary path will allow the yen to self-correct. Japan's central bank has held rates at 0.5% since ending its ultra-loose policy in January—a decade-long strategy designed to combat stagnation. Rising domestic prices now pressure households, creating a new economic dynamic.
