British Pound holds gains against Japanese Yen following BoE Bailey’s remarks
GBP/JPY extends its gains for the second successive day, trading around 209.80 during Asian hours on Friday.
The British Pound (GBP) continued its upward trend against the Japanese Yen (JPY) for the second day in a row, reaching a level of 209.80 during Asian trading hours on Friday. This strengthened position came after Bank of England (BoE) Governor Andrew Bailey voiced his ongoing dissatisfaction with UK inflation exceeding its target during a moderated discussion at the Institute of International Finance Annual Membership Meeting in Bangkok, Thailand.
While acknowledging the UK economy's resilience, Bailey noted that growth remains insufficient to meet the nation's requirements. He also expressed that it is too early to finalize opinions on the impact of second-round inflation effects, as businesses are increasingly focusing on cost-cutting rather than raising prices. The GBP benefited from stronger-than-expected UK economic data released on Thursday, with the economy unexpectedly expanding by 0.1% in August, outperforming market expectations of a 0.1% contraction.
This positive growth figure reinforced the case for a potential Bank of England interest rate hike later in the year.
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