Movement in the New Zealand Dollar (NZD), British Pound (GBP) remains choppy with the cross preferring to trade sideways within recent ranges of late. The RBNZ rate announcement yesterday became a non-event as market participants were mostly disinterested after the RBNZ raised rates to 2.5% from 2.0% as predicted. Just shows how much this anticipated release was priced into the currency already. The target inflation rate remains at 1-3%, Governor Ore saying they would tighten at speed until they feel satisfied that measures were working to lower rising inflation. Indications by the RBNZ were that the interest rate would peak at around 4.0% in mid-2023. UK growth overnight came in at 0.5% vs 0.1% expected for the month of May after a decline of -0.2% in April. The threat of a recession is in the balance now over the coming months.
The current interbank midrate is: NZDGBP 0.5153 GBPNZD 1.9406
The interbank range this week has been: NZDGBP 0.5126- 0.5180 GBPNZD 1.9302- 1.9505