GBP/NZD Plummets on RBNZ Governor's Oil Price Warning

The GBP/NZD exchange rate fell by 0.7% to 2.3284 after Reserve Bank of New Zealand Governor Anna Breman warned that higher oil prices will lift near-term inflation above the central bank's forecasts.

Breman said in a speech that if oil prices persist, they 'are expected to result in somewhat higher near-term inflation than we assumed in the September Statement.'

This has pushed market pricing for a 75% chance of a hike to 3.00% at the October meeting, up from roughly 57% before the remarks.