GBP/JPY REVIEW: created by import-candles on 2026-10-23 from Monorex history (digits 3 map); check digits/point_size/pip_size, then activate. Great Britain Pound vs Japanese Yen

The Bank of England raised Bank Rate by 0.25 percentage points to 4%, with eight members backing that move and Catherine Mann preferring 4.25%. It expects inflation to reach around 5% by mid-2027. Stronger activity and prolonged energy costs prompted the increase, but further decisions depend on how those costs spread into wages and other prices.

Thesis: The Bank judges prolonged energy inflation and stronger activity sufficient to warrant tighter policy.

Counter view: Limitation: Evidence of spillovers into other prices and wages remains limited, and weaker demand could restrain pricing power.

Japan’s inflation-adjusted wages rose 2.2% from a year earlier in September, up from August’s revised 1.6%, Reuters reports. Base pay grew 3.7%, supporting the case for further Bank of Japan tightening. Total cash earnings rose 4.6%, but the ministry says a 32.6% jump in special payments reflected a statistical quirk rather than increased bonuses.

Japan’s October services PMI rose to 51.7 from 51.3, marking a fifth month of expansion, Reuters reports. But hiring slowed to its weakest pace in the current 14-month stretch and confidence fell to its lowest since March. Composite growth eased to 52.1 from 52.3 as manufacturing slowed, leaving a mixed backdrop for further Bank of Japan tightening.

Thesis: S&P Global’s Annabel Fiddes says growth momentum and easing costs will be important as the Bank of Japan assesses further tightening.

Counter view: Limitation: services improved, but hiring and confidence weakened and composite growth slowed.