Japan says US is not pressuring BOJ for rate hikes, markets not so sure

Japan says US is not pressuring BOJ for rate hikes, markets not so sure

Source: EODHD - https://www.investing.com/news/economy-news/japan-says-us-is-not-pressuring-boj-for-rate-hikes-markets-not-so-sure-4196561
Published: Aug 17, 2025 6:45 PM

By Leika Kihara and Makiko Yamazaki TOKYO (Reuters) -Japan’s government on Friday brushed aside rare and explicit comments from U.S. Treasury Secretary Scott Bessent who said the Bank of Japan was "behind the curve" on policy, which appeared to be aimed at pressuring the country’s central bank into raising interest rates. However, some analysts saw Bessent’s comments, coupled with unexpectedly solid domestic growth data, as heightening the chance of a near-term rate hike by the BOJ - a view that pushed up Japanese government bond (JGB) yields and the yen on Friday. "It’s a sign from the U.S. that they’re watching BOJ policy carefully," Yuji Saito, executive advisor to SBI FX Trade, said of B...

Market context: This update is relevant to USD traders, with USDJPY as the primary instrument to monitor for follow-through, trend continuation, or headline volatility.