The British Pound (GBP) has continued to lose ground over the week reaching 1.8590 (0.5380) before stabilising around 1.8650 (0.5360) prior to the Bank of England (BoE) rate decision. The Bank of England hiked their interest rate as predicted to 4.50%, the 12th consecutive time the central bank has raised going back to December 2021. It was a less dovish report from members who predict a better forecast ahead for the UK economy with the governor suggesting they are more confident of being able to get inflation back down to its 2.0% target. The bank suggested they may be nearing the end of their tightening cycle; we predict just one further hike before holding into 2024. This mostly depends on a tighter labour market and stronger business activity. A break below 0.5420 (1.8440) would suggest a reversal of the bear trend at play.
The current interbank midrate is: AUDGBP 0.5356 GBPAUD 1.8670
The interbank range this week has been: AUDGBP 0.5340- 0.5380 GBPAUD 1.8587- 1.8724