U.S. Treasury Secretary Scott Bessent said in an interview on 14 Aug. that the Bank of Japan is "behind the curve" in tackling inflation and is likely to raise interest rates, an unusually pointed assessment of another country’s monetary policy. He argued that Japan faces an “inflation problem” and should tighten policy, comments that briefly lifted the yen and nudged Japanese government bond yields higher. Tokyo pushed back a day later. Finance Minister Katsunobu Kato told reporters that the conduct of monetary policy "falls under the jurisdiction of the BOJ" and declined to address Bessent’s remarks. Economy and Trade Minister Ryosei Akazawa likewise said Bessent was not pressuring Japan to act, adding that the government and the central bank remain committed to achieving stable 2% inflation while coordinating closely. Analysts said the U.S. comments, coupled with Japan’s stronger-than-expected second-quarter GDP data, increased market bets on a near-term rate move. Swap markets now assign roughly a 40% chance of a hike by October, while the benchmark 10-year JGB yield edged up to about 1.56%. The BOJ’s next policy meeting is scheduled for September, when investors will look for any signal that Governor Kazuo Ueda is ready to resume tightening.