It’s been a choppy week in the British Pound (GBP), New Zealand Dollar (NZD) pair, in early Friday trading we are around 0.5155 (1.9400) levels post overnights Bank of England Policy and rate hike. We saw no real surprise from the Bank of England hiking 25 points to 1.25% as predicted with the official vote at 6-3 in favour of the hike. The GBP rising on the news but dropping back to pre-release prices. The markets were not convinced for some reason, perhaps a 50-point move may have been the better call, but the central bank looks to be staunch about not raising too hard to combat rising inflation as this could invite more recession fears of which the UK are leading the race on. With the outlook likely to be less certain the banks appetite will remain cautious of over hiking and running the economy to a standstill.
The current interbank midrate is: NZDGBP 0.5147 GBPNZD 1.9428
The interbank range this week has been: NZDGBP 0.5124- 0.5195 GBPNZD 1.9248- 1.9513