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Bessent Says BOJ Will Raise Rates in September

9/1/2026

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Summary

Story summary

U.S. Treasury Secretary Scott Bessent said the Bank of Japan will act to strengthen yen and raise rates in September.
Bessent said the yen’s slide was not disorderly and markets already price in a September BOJ rate increase.
After his remarks, the yen traded around 159.75 per dollar, near the 160 threshold that can trigger intervention.
Bessent noted the weak yen has raised import prices and broader inflation for Japanese policymakers.

History

Historical Context

The yen’s 1998 surge past ¥130 per dollar prompted the Ministry of Finance, the Bank of Japan and Prime Minister Keizo Obuchi to spend ¥2 billion in reserves, curbing the rise by about 1.5 %. This echoed earlier shocks such as the 1985 Plaza Accord that lifted the yen to ¥160 and the 1997 Asian-financial crisis that pushed it to ¥147, shaping Japan’s reliance on coordinated intervention.

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Story summary

U.S. Treasury Secretary Scott Bessent said the Bank of Japan will act to strengthen yen and raise rates in September.
Bessent said the yen’s slide was not disorderly and markets already price in a September BOJ rate increase.
After his remarks, the yen traded around 159.75 per dollar, near the 160 threshold that can trigger intervention.
Bessent noted the weak yen has raised import prices and broader inflation for Japanese policymakers.

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