GBP/NZD holds near highs last seen in mid-January

The GBP/NZD currency pair held in proximity to an 11-week high of 2.3225 on Tuesday ahead of the outcome of the RBNZ’s policy meeting on Wednesday.

The Reserve Bank of New Zealand is expected to keep its official cash rate intact at 2.25% at its April 8th meeting.

The RBNZ has shown little urgency to tighten policy, in contrast to a more hawkish shift expected by markets.

In February, RBNZ Governor Anna Breman stated that the central bank was not intending to raise interest rates “until we see a stronger economy, more inflationary pressure.”

Breman had said the official cash rate would likely stay without change for an extended period.

Meanwhile, shifting expectations regarding Bank of England policy stance are also in focus for GBP traders.

BoE officials, including Sarah Breeden and Swati Dhingra, have moved from advocating rate cuts to favoring keeping rates on hold. The adjustment came amid rising energy costs associated with the Middle East conflict.

BoE policy makers have warned that CPI inflation could rise to a range of 3%-3.5% in the coming quarters, complicating the outlook for monetary easing.

The GBP/NZD currency pair was last up 0.25% on the day to trade at 2.3214.