TOKYO: U.S. Treasury Secretary Scott Bessent highlighted the key role of “sound monetary policy formulation” during his meeting with Japanese counterpart KATAYAMA Satsuki, the U.S. Treasury Department said in a statement on Tuesday.

The remarks come ahead of the Bank of Japan’s two-day policy meeting ending on Thursday, when markets widely expect the central bank to hold off on raising interest rates.

“Secretary Bessent highlighted the important role of sound monetary policy formulation and communication in anchoring inflation expectations and preventing excess exchange rate volatility,” the department said, describing Monday’s discussions.

The matter was critical since conditions were substantially different 12 years after the introduction of ‘Abenomics’, Bessent added.

Speaking to reporters after her meeting with Bessent on Monday, Katayama had said the two sides did not directly touch upon Japanese monetary policy.

Japan’s finance ministry was not immediately available to comment on the U.S. statement.

Reuters