U.S. Treasury Secretary Calls on Japan's Central Bank to Raise Interest Rates, Sending Signal of Policy Adjustment

Foreign media: US Treasury Secretary Biden urged the Japanese government to give the Bank of Japan (BOJ) space to raise interest rates, warning against keeping the yen weak through a long-term low-interest rate policy.

Biden's remarks sparked market expectations for the BOJ to raise interest rates soon. The BOJ is about to hold a two-day policy meeting, and the market generally expects this meeting not to raise interest rates.

Biden's comments also added complexity to the new Prime Minister Takahashi's expansionary fiscal and monetary policy proposals. Japan currently faces different challenges from the "Abenomics" era, with inflation above target, and a weak yen increasing import costs and inflationary pressures.

Original: www.toutiao.com/article/1847293133691904/

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