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Central BanksMediumUpdated×2•Originally published 26 February 2026•Updated 26 February 2026•

1 min read

BoJ’s Hawkish Stance Triggers GBP/JPY Correction Toward 211.30 Level

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Key Facts

1BoJ Governor Kazuo Ueda stated that the bank will continue to raise interest rates if economic and price forecasts materialize.

3 months ago

Version History

Version 23 months ago

What changed: Updated to include the specific market reaction, noting a correction in the GBP/JPY pair to the 211.30 level following the BoJ Governor's hawkish remarks.

Version 13 months ago

What changed: The story was updated to include comments from BoJ Board Member Takata, who introduced caution regarding the difficulty of determining the pace of hikes and the terminal rate, highlighting market developments as a key factor.

The GBP/JPY pair corrected to near 211.30 as Bank of Japan (BoJ) Governor Kazuo Ueda reaffirmed that interest rate hikes remain on the table if economic projections are met. This hawkish stance provided immediate support to the Yen, pressuring the pair lower as markets reacted to the potential for further tightening. While Ueda remains committed to policy normalization, Board Member Hajime Takata introduced a layer of caution, noting the difficulty in determining the terminal rate or the exact pace of future hikes. Takata emphasized that policy adjustments will remain highly sensitive to market developments and financial stability. Consequently, while the BoJ's overall tilt remains hawkish, the uncertainty regarding the rate ceiling continues to temper long-term market expectations. Investors are now focused on how these signals will influence the Nikkei 225 and broader currency trends in the medium term.