4 days ago
Akazawa Says Bessent Isn't Asking Japan to Hike Rates
(Bloomberg) -- Japan's chief trade negotiator Ryosei Akazawa said US Treasury Secretary Scott Bessent isn't directly asking Japan to hike interest rates, a day after Bessent moved markets by describing the Bank of Japan as being behind the curve in fighting inflation.
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'I'm looking closely at what he said, but is he really saying he wants Japan to hike rates? He's not,' Akazawa told reporters Friday. 'He's saying he thinks Japan is behind the curve, but Japan will likely continue to hike rates. He's not saying Japan should do something on rates.'
Akazawa's denial of US pressure to increase borrowing costs follows Bessent's comments Wednesday on Bloomberg TV — which moved markets early Thursday in Asian time zones. The secretary said in an interview that the BOJ is behind the curve and that Japan has an inflation problem, adding that he sees the BOJ hiking rates. Akazawa has met with Bessent multiple times through his trips to the US to negotiate a trade deal that was announced on July 22.
The yen outperformed all of its major peers on Thursday following Bessent's comments, which also referred to Federal Reserve policy.
Japan's Finance Minister Katsunobu Kato refrained from commenting on what Bessent said when asked in a press conference Friday, but added that the specifics of monetary policy should be left to the BOJ.
--With assistance from Takashi Umekawa.
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