The New Zealand Dollar (NZD) extended moves from last week’s 0.4725 ( 2.1160) against the English Pound (GBP) posting a fresh 3 week high of 0.4770 (2.0860). The RBNZ kept interest rates on hold at 5.5% Wednesday pushing the kiwi lower to 0.4765 (2.0990). The central bank saying a restrictive policy was still required in efforts to drag down inflation back to a 1-3% target band. The December quarter CPI released at 4.7% but the RBNZ still has a way to go as they remain cautious in the face of stubborn inflation. Personally, we believe the bank should be cutting rates in the late May meeting.
The current interbank midrate is: NZDGBP 0.4778 GBPNZD 2.0929
The interbank range this week has been: NZDGBP 0.4754- 0.4794 GBPNZD 2.0856- 2.1033