NZ CPI remains stubbornly high with the release Wednesday showing the June figure at 6.00% down from 6.7% vs 5.9% predicted. Fuel costs have eased while food prices, in particular vegetables, have gained over 23% in the last year. The RBNZ signalled they would be sitting on the 5.5% cash rate for some time, but this recent inflation data may test this. Meanwhile UK inflation dipped to 7.9% year on year in June compared to expectations of 8.2% making the read the biggest decline in two months and the lowest level since March 2022. The British Pound (GBP), New Zealand Dollar (NZD) cross remained in its 5-week range with the GBP recovering gains throughout this morning’s London session off 2.0490 (0.4880) back to 2.0655 (0.4840). UK Retail Sales prints tonight and should reflect the recent easing trend.
The current interbank midrate is: NZDGBP 0.4839 GBPNZD 2.0665
The interbank range this week has been: NZDGBP 0.4786- 0.4879 GBPNZD 2.0492- 2.0891