It’s been a big couple of days for the New Zealand Dollar (NZD), British Pound (GBP) cross. UK CPI came in below expectation at 3.4% based on 3.5% forecast, with the Bank of England (BoE) saying they are getting close to cutting interest rates as early as May after the central bank kept rates on hold overnight at 5.25% in a 1-8 vote. With inflation expected to fall further in the coming months the BoE will start to show more flexibility. The NZ economy has formally dropped into recession with numbers showing a dip in growth in the December quarter of -0.1% after 0.1% was expected. The pair reached 0.4745 (2.1080) midweek before reversing to 0.4780 (2.0930) into Friday.
The current interbank midrate is: NZDGBP 0.4773 GBPNZD 2.0951
The interbank range this week has been: NZDGBP 0.4744- 0.4792 GBPNZD 2.0868- 2.1079