US Treasury Secretary Scott Bessent has told Japanese Finance Minister Katsunobu Kato and Bank of Japan Governor Kazuo Ueda that the nation's next move should be to raise interest rates, according to a report from Japan's public broadcaster, which cited an interview with a US official.

The conversation took place on the sidelines of the G20 finance ministers and central bank governors meeting held in North Carolina.

Bessent's latest remarks come after he previously expressed expectations for the Bank of Japan to make "the right choice" on monetary policy.

The talks also occur just ahead of the BOJ's policy meeting scheduled for September 17-18, with market participants increasingly anticipating another hike in the policy rate.