The Bank of England (BoE) left their benchmark rate unchanged overnight at 5.25% as widely predicted. The central bank said policy would need to be restrictive for a long period of time and chances of further rate hikes are a distinct possibility if inflation pressures persist. The British Pound (GBP) fell from 0.4812 (2.0780) against the New Zealand Dollar (NZD) to reach 0.4850 (2.0615) in early morning trade but was back at 0.4830 (2.0700) as I write. Earlier in the week NZ unemployment came in at 3.9% up from 3.6% sending the kiwi to 0.4770 (2.0975) Looking ahead we have NZs inflation expectations. We expect Pound strength to continue next week with a possible retest of 0.4770 (2.0960)
The current interbank midrate is: NZDGBP 0.4833 GBPNZD 2.0691
The interbank range this week has been: NZDGBP 0.4768- 0.4851 GBPNZD 2.0612- 2.0971