The Bank of England (BoE) Kept interest rates on hold overnight at 5.25% as expected with the bank suggesting they may start cuts in August with a weak outlook for growth as projections the economy will only grow just 0.8% in 2024. Inflation is expected to fall to their 2.0% target point over the coming months but may be a rocky road with energy price effects before settling around the 2.0% late in 2025. Agreement over 5.25% wasn’t a given with 2 members wanting to drop rates 25 points to 5.0%, the vote 2-7 in favour of a hold. Prices in the New Zealand Dollar (NZD), British Pound (GBP) extended higher to 0.4820 (2.0750) this morning a fresh 8 week high in the cross. Of note; price sits bang on the 61.8% fib level suggesting we could see a move today back to 0.4800 (2.0830)
The current interbank midrate is: NZDGBP 0.4819 GBPNZD 2.0751
The interbank range this week has been: NZDGBP 0.4779- 0.4825 GBPNZD 2.0723- 2.0922