The GBP/NZD currency pair hovered above a 27-week low of 2.2454 on Tuesday, after data showed that UK wage growth had been the slowest since the three months to January 2022.
Regular pay, excluding bonuses, increased 4.2% year-on-year to GBP 691 per week in the three months to December, slowing from a 4.4% surge in the preceding period, data by the Office for National Statistics showed.
At the same time, the UK unemployment rate went up to 5.2% in the three months to December from 5.1% in the previous period. It has been the highest jobless rate since the three months to February 2021.
The data added to the case for further policy easing by the Bank of England.
The BoE left its benchmark interest rate intact at 3.75% at its February 5th meeting in a narrow 5 to 4 vote, as officials weighed easing inflation pressures against risks stemming from a weakening economy.
The official UK CPI inflation numbers for January are due to be released tomorrow.
Meanwhile, market players also braced for the outcome of the RBNZ’s policy meeting.
The Reserve Bank of New Zealand is expected to keep its official cash rate intact at 2.25% at its February meeting.
In November, the RBNZ lowered its policy rate by 25 bps to 2.25%, bringing borrowing costs to their lowest level since mid-2022, due to significant spare capacity in the NZ economy and easing inflation pressures.
RBNZ Governor Ann Breman had said the official cash rate would likely stay without change for an extended period. This outlook assumed economic conditions evolved as expected.
Expectations for a restrictive RBNZ policy path have provided support to the kiwi dollar.
The GBP/NZD currency pair was last down 0.37% on the day to trade at 2.2498.
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