Bessent urges BOJ chief to conduct 'sound' policy to avoid yen volatility

ASHEVILLE, North Carolina, Sept 1 : U.S. Treasury Secretary Scott Bessent urged Bank of Japan Governor Kazuo Ueda to conduct sound monetary policy to anchor inflation expectations and avoid excessive yen volatility, the Treasury Department said, cementing the case for a Japanese rate hike this month.In a meeting with Ueda, Bessent also expressed "strong support" for Japan's steps to address the yen's undervaluation and noted how the weak yen was causing domestic inflationary pressures, the Treasury said in a statement on Tuesday.The remarks, which underline Bessent's recent calls for the BOJ to raise interest rates, bolster the case for the central bank to hike borrowing costs at its next meeting on September 17-18.The two officials met on Sunday at the G20 finance ministers' and central b