GBP/JPY holds near 10-week high, focus on BoJ, BoE meetings

The GBP/JPY currency pair held not far from a fresh 10-week peak of 194.89 on Tuesday, as investors braced for the outcome of the Bank of Japan’s and the Bank of England’s policy meetings this week.

The Bank of England is expected to maintain its benchmark interest rate at 4.5% at its March 20th policy meeting.

In February, the BoE delivered its third rate cut since the beginning of its monetary easing cycle in August 2024, bringing borrowing costs to their lowest level since May 2023.

All 9 members of the Monetary Policy Committee voted in favor of a rate cut, while 2 members favored an out-sized 50 basis point reduction.

All MPC members have agreed that policy easing would likely be gradual this year amid rising concerns over economic growth and elevated underlying services inflation.

Meanwhile, the Bank of Japan is largely expected to keep its benchmark short-term interest rate intact at 0.5%, or at the highest level in 17 years.

The BoJ has delivered three rate hikes since it put an end to negative interest rates in March 2024.

It has also flagged further rate hikes and reduced monetary support in case economic and price data come in line with its projections.

The GBP/JPY currency pair was last up 0.06% on the day to trade at 193.87.