The Bank of England (BoE) left its key interest rate unchanged this morning at 5.25% and signalled they would start joining other central banks cutting interest rates later this year. The vote was 2-7 in favour of a “remain” while 2 members suggested a cut would have been more appropriate. The Pound lost value on the release falling from 0.4830 (2.0700) to 0.4845 (2.0640) but has since recovered to 0.4835 (2.0690) in morning trade. Overall, this week the pair has traded within recent ranges following a 4-week theme. Earlier UK inflation came in bang on expectations at 2.0% offering further excitement the BoE should start unwinding monetary policy in August or November. A push past resistance at 0.4855 (1.0600), the top of the 16-week move should see further upswing bias for the kiwi.
The current interbank midrate is: NZDGBP 0.4832 GBPNZD 2.0695
The interbank range this week has been: NZDGBP 0.4808- 0.4847 GBPNZD 2.0631- 2.0798