BoJ Rate Hike Sparks GBP/JPY Shift: Yen Weakens Despite Higher Rates

The Bank of Japan's recent decision to raise its policy rate from 1% to 1.25%, the highest level in 31 years, has created a fresh shift in the GBP/JPY market.

The central bank's move was widely expected, but the yen weakened instead of gaining further strength.

This unexpected reaction has made the GBP/JPY outlook more interesting, as markets are now watching what the decision means for future Japanese policy.