The GBP has also shared the experience of the EUR and the NZD, following interest rate cuts, from the Bank of England. The cross rate has been relatively stable and this is likely to continue, if respective Central Banks follow the rate cutting cycle. Positive economic conditions appear to be returning to the ‘Old Country’, but significant challenges remain. There are emerging political risks, domestically and internationally, while the upcoming budget may have a negative impact. The Labour Government is facing difficult choices and possible tax rises, as an option, will not be well received.
The current interbank midrate is: NZDGBP .4760 GBPNZD 2.1008
The interbank range this week has been: NZDGBP .4700 – .4770 GBPNZD 2.0964 – 2.1276