Ella 
GBP/JPY rebounded from intraday losses, extending its winning streak since March 12. In Asia on Tuesday, GBP/JPY rose to around 190.30. Bank of Japan (BoJ) board members have chosen to raise interest rates by 10 basis points (bps) from -0.1% to 0% for the first time since 2007.
This decision marks the end of the Bank of Japan’s era of negative interest rates. This is in line with market expectations. Larger-than-expected wage increases at Japan’s largest companies have laid the groundwork for the Bank of Japan to exit a decade of stimulus measures.
In the UK, inflation is showing signs of easing, but the Bank of England (BOE) remains cautious until consumer prices return to their 2% target. The Bank of England is expected to keep interest rates unchanged at 5.25% at its meeting on Thursday. Traders are eagerly awaiting UK consumer and producer price data due on Wednesday.
There was speculation that the Bank of England (BOE) might cut interest rates as consumer inflation expectations softened on Friday, rising 3.0%, but slightly below the previous reading of 3.3%. Investors expect the Bank of England to start cutting interest rates in August, with one or two more cuts before the end of the year. This sentiment could weigh on Sterling (GBP) and weigh on the GBP/JPY cross.
