Japan's Former BOJ Official Says Bessent's 'Unusual' Intervention Could Hurt Credibility

According to Jin10, a former senior Bank of Japan official warned that U.S. Treasury Secretary Bessent's 'unusual' intervention in Japan's monetary affairs could damage the BOJ's credibility and trigger greater volatility in global markets. Markets are currently expecting the BOJ to raise rates by 25 basis points at next week's meeting, faster than its earlier more cautious timetable. Bessent has stepped up verbal pressure in recent weeks, taunting global traders to bet against him and claiming insider knowledge of the BOJ's intentions. Japan's Finance Minister Satsuki Katayama said the U.S. Treasury secretary's warning to bond traders that he was 'the house' sounded 'a little scary' when translated into Japanese. Takahide Kiuchi, executive economist at Nomura Research Institute and a former BOJ official, said Bessent's intervention in Japan's monetary policy was unusual and could undermine the BOJ's independence. Another former central bank official said that if the BOJ were seen as setting rates under external influence, markets would become more skeptical of its future statements and decisions, eroding its credibility.