GBP/JPY Slips as BoJ Hike Bets Lift Yen, Sterling Under Pressure

The British pound has weakened against the Japanese yen as expectations of another Bank of Japan rate increase boost the yen to its strongest level against the US dollar in about six months.

This development comes as data from Japan shows second-quarter growth at an annualised 1.4%, up from 1.1% previously, further reinforcing the case for higher rates.

The implied probability of a 0.25 percentage-point BoJ hike at the September meeting sits around 80%.

In contrast, the pound is weighed by a less settled Bank of England outlook, with policymakers split on whether inflation still warrants tighter policy.