GBP/JPY tumble to near 190.60 amid BoJ rate hike prospect

• GBP/JPY faces some selling pressure to near 190.60 in Monday's early European session.
• BoJ's hawkish monetary policy outlook and safe haven demand underpin the Japanese Yen. 
• BoE Bailey endorsed a gradual path for "removing monetary policy restrictiveness." 

The GBP/JPY cross attracts some sellers to around 190.60 during the early European trading hours on Monday. The Japanese Yen (JPY) gathers strength against the Pound Sterling (GBP) amid the hawkish expectations of the Bank of Japan (BoJ) and the safe-haven demand. 

Hawkish signals from the BoJ were key support for the JPY after Deputy Governor Shinichi Uchida said that the Japanese central bank did intend to raise interest rates further. Still, Uchida ruled out a hike at the BOJ's upcoming meeting in March. 

Furthermore, the escalating concern over a global trade war further boosts the JPY's relative safe-haven status and creates a headwind for GBP/JPY. Late Sunday, US Commerce Secretary Howard Lutnick said that the 25% tariffs on steel and aluminum imports, set to take effect on Wednesday, are unlikely to be postponed. 

The Bank of England (BoE) governor Andrew Bailey said the bank will consider further rate cuts but will take "a gradual and careful approach" as the inflation persistence is less likely to fade on its own accord. Traders await forecasts of the Office for Budget Responsibility (OBR) on March 26, at a time when Finance Minister Rachel Reeves is pressured to clarify how she would balance the books without breaking her own fiscal rules.