FXStreet reported a two-month high for sterling against the yen as Britain’s September inflation increase and the prospect of a Bank of England rate rise put Thursday’s policy decision in focus.
In a report timestamped 09:05:39 GMT Wednesday, FXStreet placed GBP/JPY just below the mid-¥213s and up about 0.20% on the day. The pair had earlier traded near ¥212, the outlet said.
The Bank held Bank Rate at 3.75% at its September meeting. Six members of its Monetary Policy Committee voted to keep the rate unchanged, while three favored a quarter-point increase to 4%.
UK CPI inflation rose to 3.5% in the 12 months to September, from 3.1% in the year to August, according to the Office for National Statistics. In its September outlook, the Bank projected inflation near 3.75% in the final quarter of 2026 and slightly above 4% in the first quarter of 2027, using energy prices as of Sept. 14. The Bank said persistently high energy costs could raise the risk of further pressure on wages and prices.
The Office for National Statistics has scheduled its October CPI report for Nov. 18.
A Reuters poll of economists pointed to a quarter-point move on Thursday, from 3.75% to 4%. Reuters described such a decision as the Bank’s first increase since August 2023.
Reuters also reported that market pricing signaled three or four more quarter-point increases in 2027, which would put Bank Rate at 4.75% to 5%. That pricing is a market expectation, not a policy commitment.
The Bank is scheduled to publish its decision and minutes at 7 a.m. ET (12:00 GMT) Thursday, Nov. 5.
