A number of Japanese government officials revealed on the 10th that the Japanese and US governments carried out an unusual joint yen purchase intervention on July 31, US Eastern Time. This is the first such action in 28 years. The decisive factor is that Bank of Japan Governor Kazuo Ueda strongly hinted at the press conference on the same day that the policy interest rate will be raised as soon as possible in September and after. Ueda made it clear that he would “speed up the pace of interest rate hikes” if necessary. The US side gave a positive assessment to this, and both sides are on the same page in preventing excessive depreciation of the yen. This is because the US is concerned that Japan's slow rate hike has caused excessive depreciation of the yen, which in turn has triggered further price increases and long-term interest rates. This may affect global financial markets. A senior Japanese government official revealed, “Mr. Ueda's statement is very persuasive to the US side. At the same time, this also means that the Bank of Japan will have no choice but to raise interest rates at its next policy meeting.”

A number of Japanese government officials revealed on the 10th that the Japanese and US governments carried out an unusual joint yen purchase intervention on July 31, US Eastern Time. This is the first such action in 28 years. The decisive factor is that Bank of Japan Governor Kazuo Ueda strongly hinted at the press conference on the same day that the policy interest rate will be raised as soon as possible in September and after. Ueda made it clear that he would “speed up the pace of interest rate hikes” if necessary. The US side gave a positive assessment to this, and both sides are on the same page in preventing excessive depreciation of the yen. This is because the US is concerned that Japan's slow rate hike has caused excessive depreciation of the yen, which in turn has triggered further price increases and long-term interest rates. This may affect global financial markets. A senior Japanese government official revealed, “Mr. Ueda's statement is very persuasive to the US side. At the same time, this also means that the Bank of Japan will have no choice but to raise interest rates at its next policy meeting.”