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US Treasury says Japan no longer faces deflationary environment, yen level must change

By Thomson Reuters Oct 15, 2026 | 11:11 PM

BANGKOK, Oct 16 (Reuters) – Japan no longer faces the deflationary environment ​that existed for ‌more than a decade, and the level of its currency and monetary policy ‌must ​change accordingly, US ⁠Treasury Undersecretary ⁠Erin Browne said on Friday.

Browne, in Bangkok for the annual meetings of ​the International Monetary Fund and World Bank, ⁠said US ⁠and Japanese officials ​worked closely together at all ​levels to support stable, ‌well-functioning markets and would continue to do so.

“Sharp, disorderly currency moves ⁠can … really create much wider consequences that force investors to ⁠unwind ‌positions and creates ⁠volatility across markets, ​and ‌potentially raises financing ​costs in ⁠both the United States, and really globally,” Browne told reporters.

(Reporting by Andrea Shalal; Editing by John ​Mair)