On Tuesday, local time, the yen retreated to near an eight-year low against the pound as the Bank of Japan maintained its ultra-loose monetary policy at its January meeting。

BOJ keeps its benchmark short-term interest rate at -0.10% and keep the upper limit on the 10-year Treasury yield unchanged at 0% under its yield curve control policy.。

The central bank also kept the ceiling on long-term government bond yields at 1%.。

Meanwhile, in its quarterly outlook report, the Bank of Japan cut its core consumer price index (CPI) forecast for the fiscal year ending April, from 2 in October..8% down to 2.4%。

For fiscal year 2025, the Bank of Japan said it expects core inflation to reach 1.8%, compared with the previous 1.7% forecast upward。

Bank of Japan Governor Kazuo Ueda said he sees no need to move away from the central bank's dovish stance for the time being。

Joy Yang, head of Asian economic research at Point72, was quoted by Reuters as saying: "Most analysts now predict that at the April meeting, the Bank of Japan will withdraw from its negative interest rate policy, following the outcome of new wage negotiations.。"

She added: "While we continue to see April as the most likely window of time, the risk of the BoJ delaying its first rate hike is rising.。"

GBP / JPY down 0 as of 7: 43 GMT Tuesday.02%, trading at 188.108。After the Bank of Japan's decision, this forex cross rose to 188.909。This is from last week's high of 188.928 is not far, the highest level for the pair since August 25, 2015.。