GBP/JPY Bearish Bias Persists Ahead of BoE, BoJ Rate Decisions
The GBP/JPY pair continues to trade under a bearish bias ahead of the Bank of England and Bank of Japan's monetary policy announcements. The pair is currently trading near 209, up 0.32% on Tuesday but stuck in a tight range after the sharp Japanese Yen rally earlier this month.
The Bank of England is expected to maintain its benchmark interest rate at 3.75% for the sixth meeting in a row, with investors focusing on the vote split among policymakers. A more hawkish tilt in the vote could underpin the British Pound, despite elevated energy costs and inflation risks associated with higher oil prices.
Market participants are confident that the Bank of Japan will lift interest rates to 1.25% for the second time this year. However, a faster pace of policy tightening could trigger renewed selling pressure in GBP/JPY if the BoJ signals further rate increases.