US Treasury Secretary Scott Bessent criticised the Bank of Japan’s stance on inflation, telling Bloomberg TV on Wednesday that the central bank is “behind the curve” and needs to raise rates to get price pressures under control. Bessent said he discussed the issue directly with BOJ Governor Kazuo Ueda.
Japan has kept one of the lowest policy rates among major economies, even as its key inflation gauge has held at or above the 2% target for more than three years. Last month, Ueda struck a dovish tone and gave no timeline for policy tightening.
Bloomberg adds commentary:
- Hideo Kumano of Dai-Ichi Life Research Institute said Bessent’s remarks — breaking the usual norm of avoiding public comment on another country’s monetary policy — could be aimed at weakening the dollar, and may complicate the BOJ’s next move
US Treasury Secretary Scott Bessent criticised Bank of Japan – says its time to hike rates
