GBP/JPY shoots above 191.00 as BoJ decides to raise official interest rates by 0.10%

• GBP/JPY extends its winning streak despite the BoJ's hawkish stance.
• BoJ board members decided to raise the interest rate to 0% from -0.1%.
• Investors are awaiting UK consumer and producer price data.

The crossing GBP/JPY has rebounded after the initial losses and is extending its winning streak that began on March 12. The pair is trading higher just above the 191.00 level at the start of the European session on Tuesday. Bank of Japan (BoJ) advisors They chose to raise the interest rate by 10 basis points (bp), from -0.1% to 0%for the first time since 2007.

This decision marks the end of an era of negative interest rates and matches market expectations. The wage increases of large Japanese companies, much stronger than expected, had already laid the foundations for the BoJ to abandon the stimulus measures it has been applying for a decade.

In the UK, inflation is showing signs of moderation, but the Bank of England (BoE) maintains a cautious stance until consumer prices return to the 2% target. BoE expected to keep interest rates unchanged at 5.25% during Thursday meeting. Investors are eagerly awaiting data on consumer and producer prices, scheduled for release on Wednesday.

Due to softer consumer inflation expectations on Friday, which rose to 3.0% but slightly below the previous spike of 3.3%, the market speculated on a possible rate cut from the Bank of England (BoE). Investors expect the BoE to begin lowering rates in August, with one or two additional cuts between now and the end of the year.