United Kingdom (GBP)
10-Year Gilt Yield:
4.50%–4.51% (June 19–20, 2025)
Bank of England Interest Rate:
As of June 19, 2025, the Bank of England (BoE) has held the official Bank Rate steady at 4.25%. This decision was made by a 6-3 majority vote of the Monetary Policy Committee (MPC) during its June meeting.
Key Points:
Current Interest Rate: 4.25% (held steady)
Inflation: UK annual inflation stood at 3.4% in May 2025, above the BoE’s 2% target but slightly easing from previous months.
Inflation Outlook: The BoE expects inflation to rise to about 3.7% in Q3 2025 before gradually declining next year.
Economic Growth: UK GDP growth remains weak, with some signs of a softening labor market and moderating wage growth.
Monetary Policy Stance: The BoE maintains a cautious, data-dependent approach, keeping rates restrictive to combat inflation but ready to adjust as economic conditions evolve.
Rate Cuts: Although the BoE held rates in June, markets and analysts widely expect the first rate cut to come in August 2025, with further cuts possible later in the year depending on inflation and growth data.
Geopolitical Risks: Rising tensions in the Middle East and uncertainties over global tariffs could add inflationary pressures, influencing future BoE decisions.
MPC adopted 4.25% (held steady at the June 2025 meeting)
Japan (JPY)
10-Year Japanese Government Bond Yield:
1.44%–1.45% (June 19–20, 2025)
Bank of Japan Interest Rate:
0.50% (unchanged as of May/June 2025)
Summary Table
Country 10Y Bond Yield Policy Interest Rate
United Kingdom 4.50%–4.51% 4.25%
Japan 1.44%–1.45% 0.50%
Interpretation for GBPJPY
The yield and interest rate differentials remain strongly in favor of the British pound. This supports GBPJPY on a fundamental basis, as higher UK yields and rates attract capital relative to Japan’s much lower rates.
The Bank of England is holding rates steady due to persistent inflation, while the Bank of Japan is also on hold but at a much lower level, reflecting Japan’s ongoing low inflation and growth outlook.
#GBPJPY
10-Year Gilt Yield:
4.50%–4.51% (June 19–20, 2025)
Bank of England Interest Rate:
As of June 19, 2025, the Bank of England (BoE) has held the official Bank Rate steady at 4.25%. This decision was made by a 6-3 majority vote of the Monetary Policy Committee (MPC) during its June meeting.
Key Points:
Current Interest Rate: 4.25% (held steady)
Inflation: UK annual inflation stood at 3.4% in May 2025, above the BoE’s 2% target but slightly easing from previous months.
Inflation Outlook: The BoE expects inflation to rise to about 3.7% in Q3 2025 before gradually declining next year.
Economic Growth: UK GDP growth remains weak, with some signs of a softening labor market and moderating wage growth.
Monetary Policy Stance: The BoE maintains a cautious, data-dependent approach, keeping rates restrictive to combat inflation but ready to adjust as economic conditions evolve.
Rate Cuts: Although the BoE held rates in June, markets and analysts widely expect the first rate cut to come in August 2025, with further cuts possible later in the year depending on inflation and growth data.
Geopolitical Risks: Rising tensions in the Middle East and uncertainties over global tariffs could add inflationary pressures, influencing future BoE decisions.
MPC adopted 4.25% (held steady at the June 2025 meeting)
Japan (JPY)
10-Year Japanese Government Bond Yield:
1.44%–1.45% (June 19–20, 2025)
Bank of Japan Interest Rate:
0.50% (unchanged as of May/June 2025)
Summary Table
Country 10Y Bond Yield Policy Interest Rate
United Kingdom 4.50%–4.51% 4.25%
Japan 1.44%–1.45% 0.50%
Interpretation for GBPJPY
The yield and interest rate differentials remain strongly in favor of the British pound. This supports GBPJPY on a fundamental basis, as higher UK yields and rates attract capital relative to Japan’s much lower rates.
The Bank of England is holding rates steady due to persistent inflation, while the Bank of Japan is also on hold but at a much lower level, reflecting Japan’s ongoing low inflation and growth outlook.
#GBPJPY
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.