Former Bank of Japan official Seiji Adachi said on Aug. 25 that the central bank is highly likely to raise interest rates in September, matching widespread market expectations. He said the BOJ (Japan's central bank) is effectively trapped because markets have almost fully priced in a hike, and the yen could weaken sharply again if policymakers do not act. U.S. Treasury Secretary Scott Bessent has said policy action is needed after foreign-exchange intervention and expressed hope that BOJ Governor Kazuo Ueda would raise rates. Adachi said Bessent had repeatedly suggested the BOJ would be the next institution to act, leaving Japan's government unable to tell the central bank not to proceed. With Japan's inflation momentum strong, Adachi expects the BOJ to continue raising rates after a September move, potentially acting again in January and taking the rate above the 1.25% or 1.5% level previously viewed as the end of the current cycle.