Japan Signals Near-Term BOJ Rate Hike to Shore Up Yen

Japan’s government, led by Prime Minister Sanae Takaichi, is said to back a near-term Bank of Japan rate increase (likely September or October) as yen weakness pressures prices and to amplify the impact of the recent US-Japan currency intervention, while emphasizing that monetary policy decisions remain with the BOJ and should be coordinated with the government to reach the 2% inflation target.