The GBP/JPY currency pair is currently holding onto its gains above the 194.00 level as traders anticipate that the Bank of England (BoE) will gradually lower interest rates. The market sentiment is that the central bank will implement a series of rate cuts over time.
The BoE’s decision to reduce rates is based on the need to stimulate economic growth and support the economy amidst ongoing uncertainties. Traders are closely monitoring the BoE’s monetary policy decisions and their impact on the GBP/JPY exchange rate.
Overall, the GBP/JPY pair is expected to remain steady as traders continue to watch for any developments from the BoE regarding interest rate adjustments.