The Bank of England (BoE) left interest rates at 5.25% overnight, the central bank said policy would stay restrictive for some time to combat stubborn inflation. The English Pound (GBP) strengthened off 1.8920 (0.5285) against the Australian Dollar (AUD) to reach 1.8980 (0.5270) this morning post the news. The BoE is expected to start cutting rates in the second half of 2024 in line with inflation expectations. On the chart 0.5300 (1.8860) looks safe for now to the low side, next week’s RBA cash rate release will be the test as we contemplate a hike from 4.10% which in turn should give the Aussie buyer support.
The current interbank midrate is: AUDGBP 0.5271 GBPAUD 1.8971
The interbank range this week has been: AUDGBP 0.5207- 0.5291 GBPAUD 1.8897-1.9203