What will happen to New Zealand interest rates? (Tom Holian)

We have seen GBPNZD exchange rates moves in an upwards direction for the last few weeks owing to the recent bout of political uncertainty in the country.

It took weeks for the hung parliament to be organised and currency does not generally react well to political uncertainty, which is why we have seen the market break 1.90 in the last week.

The new Prime Minister Jacinta Ardern has spoken about the New Zealand Dollar and has suggested that she’s not too concerned with the weakness of the currency which could be of benefit to New Zealand exporters.

The Reserve Bank of New Zealand is due to release their latest interest rate decision later on tonight and the expectation is that they will keep interest rates on hold.

The statement which will be released at the same time will provide us with further clues as to where policy may move in the future but I think we’ll see interest rates on hold in New Zealand for quite some time to come.

The other reason for the the Kiwi’s weakness against the Pound is owing to the global uncertainty at the moment and this is why I think we could see GBPNZD exchange rates head towards 2 before the end of the year.

However, I think the over-riding factor will be what happens with the ongoing Brexit talks which are due to resume tomorrow.

The tone has been a little more positive recently from the UK and Prime Minister Theresa May so if we have good news towards the end of this week we could see further gains for Sterling vs the New Zealand Dollar.

If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.

A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on [email protected] and I will endeavour to get back to you as I can.