U.S. Treasury's Bessent Seeks Sound Monetary Policy in Japan

Washington, Oct. 28 (Jiji Press)--U.S. Treasury Secretary Scott Bessent has stressed the importance of prudent monetary policy in Japan to stabilize inflation expectations and exchange rates during a meeting with Japanese Finance Minister Satsuki Katayama, the U.S. Treasury Department said Tuesday.

In the meeting in Tokyo on Monday, Bessent "highlighted the important role of sound monetary policy formulation and communication in anchoring inflation expectations and preventing excess exchange rate volatility," the department said in a statement.

"Conditions are substantially different 12 years after the introduction of Abenomics," Bessent also said, referring to the late former Japanese Prime Minister Shinzo Abe's economic policy of aggressively pursuing monetary easing and fiscal stimulus amid low interest rates.

With the global economic situation shifting toward rising interest rates, the remarks appear to be aimed at restraining the Takaichi administration, launched last week and widely expected to continue Abenomics.

At a two-day monetary policy meeting from Wednesday, the Bank of Japan is widely expected to maintain its policy interest rate unchanged.

[Copyright The Jiji Press, Ltd.]