The English Pound (GBP) climbed to 2.0630 this morning against the New Zealand Dollar (NZD) after the Bank of England hiked their base interest rate 50 points to 5.00% in a surprise move after markets were mostly expecting a rise to 4.75%. The central bank is more aggressive as efforts ramp up to curb massive inflation issues. This is the highest interest rate since 2008 with thoughts around the BoE now facing prospects of having to nudge the economy into recession later in the year to contain rising prices. Earlier UK inflation came in hot at 8.7% year on year after 8.4% was predicted, an unchanged shock result. This is clearly not the number the Bank of England were hoping for, the result beating out lower expectations the 4th month in a row. Further rises by the central bank- perhaps 2 more in August/September are now more than likely. A retest of the low at 0.4820 (2.0750) looks the most likely scenario in the coming hours/days, a push through here and the next target is 0.4670 (2.14) the low of March 2020 and the infamous day of the Brexit vote in June 2016.
The current interbank midrate is: NZDGBP 0.4855 GBPNZD 2.0597
The interbank range this week has been: NZDGBP 0.4820- 0.4878 GBPNZD 2.0497- 2.0746