Author, Mike Smith
In this article I take a look at the Pound to New Zealand Dollar forecast for the remainder of 2025 and into early 2026. I’ll give you my exchange rate predictions and talk about the key factors driving the GBP/NZD rate.
Will the New Zealand Dollar strengthen or weaken in the near term?
The GBP to NZD rate has been in a strong upward trend since the Autumn of 2022.
The Pound reached its highest level for a decade in the middle part of October.
A slight correction followed, but it didn’t take long for the UK currency to begin improving against the Kiwi once more.
Why has the New Zealand Dollar been Weakening?
Recent New Zealand economic data has been softer than expected.
Consumer spending, business investment and jobs numbers have all pointed to a domestic slowdown.
You might be asking, why does this matter?
Well, the weak Kiwi data has fuelled speculation that the Reserve Bank of New Zealand may not have ended its interest rate cutting cycle just yet.
The Kiwi central bank has trimmed its benchmark lending rate from 5.5% down to its current 2.5% in little more than a year.
The lower reward for holding NZD saw investors steadily move funds out of New Zealand.
The New Zealand Dollar weakened as a result.
What will affect GBP/NZD in coming weeks?
Last week’s UK Inflation data showed that British prices are rising at a slower than anticipated level, making it more likely that the Bank of England will cut interest rates at its meeting of December 18th.
Futures markets currently price-in a 70% likelihood that the UK central bank will cut rates next month.
Such an outcome could hold back the Pound.
Elsewhere, Sterling has suffered broad weakness in recent weeks as investors worry about British Chancellor Rachel Reeves’ Budget, to be delivered on Wednesday.
If the markets find Reeve’s plans to tackle the UK deficit less than convincing, further losses could follow for Sterling.
Pound to New Zealand Dollar Forecast for Late 2025 / Early 2026
We forecast that the GBP/NZD exchange rate will climb to $2.36 in the near-term.
Chancellor Reeves understands the importance of delivering a credible budget plan this week.
So, it would be a big surprise if she doesn’t.
Elsewhere, US President Trump’s tariff policy continues to suppress global trade.
The New Zealand economy remains heavily dependent on demand from export markets.
Any fresh announcement from Trump of increased tariffs could therefore accelerate GBP/NZD’s move towards the $2.36 level.
It’s hard to be exact when it comes to predicting exchange rates.
Forecasting a currency is really about the likely direction rather than coming up with a precise number.
By the way, if you find a precise forecast exchange rate online, you are reading BS. You may as well Google next week’s lottery numbers while you’re at it.
When it comes to the future, all you can do is make an informed judgement based on what is known or can be reasonably anticipated.
That’s how we navigate currency markets – with a common-sense approach.
For further information, our guide on transferring money to New Zealand explains the process.
Alternatively, if you would like to discuss the GBP to NZD outlook, or find our latest rates, please request a quote below.
What is a good Pound to New Zealand Dollar rate?
The GBP to NZD exchange rate lets you know how many New Zealand Dollars can be bought for 1 British Pound.
For someone looking to exchange British Pounds (GBP) into New Zealand Dollars (NZD), they want the highest rate possible.
Whereas someone selling their New Zealand Dollars and buying British Pounds wants a low GBP to NZD exchange rate.
The easiest way to tell if the current GBP to NZD rate is good or bad is to look at historical exchange rates.
Even over the last 5 years, the average GBP/NZD rate isn’t much different at $1.97 (source: Bank of England).
Using average historical rates is a simple way to gauge how good or bad today’s rate is.
When the GBP to NZD rate is above its long-term average of $1.97 it can be considered a good rate to exchange Pounds into New Zealand Dollars.
At present, the GBP to NZD rate is well above the long-term average, making it an opportune time to buy New Zealand Dollars.
The further the rate is away from the average, the more extreme it is.
Over the past 10 years, the highest rate was on 10 September 2015 when the GBP/NZD rate reached $2.4596.
The lowest rate in the past 10 years was on 8 November 2016 when the rate fell to $1.6846.
Most of the big moves happen as a result of significant events – for example, Brexit or Covid-19.
Of course, these types of significant events are almost impossible to predict.
If you are looking to exchange money, you are usually better off focusing on current trends and recent highs/lows as a guide to timing.
GBP to NZD weekly forecast – a short-term approach
Exchange rates over a weekly period will have a much narrower set of drivers than over longer time frames.
Over the space of a week, only a handful of things can influence the GBP to NZD exchange rate.
Most of the important news that will impact exchange rates every week is scheduled in advance, so investors aren’t caught by surprise.
You can view the scheduled economic events over the coming week by looking at the DailyFX economic calendar.
There are other free economic calendars you may find online, but I like this one because it has a nice, clear layout and gives a low, medium, or high level of importance to each event.
As currency brokers, we follow the weekly economic calendar closely as it gives you a heads-up on potential risks that lie ahead.
If you are concerned about the GBP/NZD rate moving against you, it can make sense to exchange your money before a high-impact event.
Another way of looking at the GBP to NZD exchange rate over a weekly horizon is to assess the current trend and any near-term price patterns.
Technical analysis is the fancy name for using price patterns to predict future exchange rate movements.
You can get a decent overview of GBP to NZ Dollar technical analysis here.
The period defaults to an Hourly outlook, but you can change it to Weekly or whatever time frame you are interested in.
Technical analysis is by no means an exact science, but it can give you another perspective on the GBP to NZD exchange rate.
If you would rather speak to someone about your requirements, you can always talk to a currency broker and discuss your options.
GBP to NZD forecast 12 months or more (practical approach)
When you look at exchange rates over longer periods it calls for a different approach.
Short-term news simply becomes noise.
The passage of time allows bigger themes to play out but also means the number of variables impacting an exchange rate becomes huge.
My view is that there are so many drivers of the GBP to NZD rate over the long term that you are best to use historical rates as a guide to timing.
Let’s keep it simple here.
If you look at a 1-year, 5-year and 10-year chart for the GBP to NZD rate, you can get a good feel for how the rate has traded historically (peaks, troughs and trends).
Need some guidance on Pound to New Zealand Dollar exchange rates?
Getting a favourable GBP to NZD exchange rate can make a big financial difference to you.
When you look at a chart of the GBP/NZD exchange rate, you can see there are a lot of big swings – both up and down.
I’ve found the GBP to NZD rate to be one of the more volatile currency pairs, so timing is important!
Proactive timing can mean the difference between a good and bad rate.
At Key Currency, we are fundamentally different from other money transfer companies.
We are not an impersonal bank or a faceless online app. You can find out about our expert team on our website.
Our money transfer service is designed to help make transferring money internationally easy and cost-effective.
We can discuss exchange rates and market trends with you and agree on the right time to exchange your money, by understanding your requirements and taking advantage of any favourable movements.
Our service has a 5-star rating on Trustpilot, based on over 2,500 customer reviews.
Key Currency is also regulated by the FCA as an Authorised Payment Institution (No. 753989). All money transfers are conducted through safeguarded client accounts.
If you would like to find out more about our service or our latest GBP to NZD rates, get a free quote below.