JPMorgan: Besant Has Forced the Bank of Japan into a Dilemma over Raising Interest Rates

After US Treasury Secretary Scott Besant launched a public pressure campaign, Bank of Japan Governor Kazuo Ueda faces exceptionally severe financial market turbulence risks as this month's policy decision approaches. Ayako Fujita, Chief Japan Economist at JPMorgan Securities, stated: "After such a clear stance from the United States, it would be a problem if the Bank of Japan does not take action. However, if the market thinks the Bank of Japan cannot raise rates without American tailwinds, that poses a significant risk to the effectiveness of the rate hike." "The current pace of long-term interest rate increases is not actually the Bank of Japan's fault. What can truly curb both yen depreciation and rising long-term rates is a credible fiscal signal from the government."