GBP/NZD is currently trading near 2.35, but every institution included in the survey expects the pair to decline over the next 12 to 18 months. Forecasts for late 2027 range from roughly 2.09 to 2.27, pointing to a broader expectation that the New Zealand Dollar will strengthen against Sterling.
For individuals or companies planning to buy New Zealand Dollars, the current exchange rate could therefore look attractive if the banking consensus proves accurate.
Latest Forecasts Point to a Lower GBP/NZD Rate
The latest Exchange Rates UK Research poll shows an unusually strong level of agreement among major banks.
All surveyed institutions expect GBP/NZD to fall below its current level in the coming quarters.
Westpac and UBS are the most positive on Sterling, forecasting that the pair could remain around 2.22–2.27 into 2027.
By contrast, ANZ and BNZ expect a much stronger Kiwi Dollar, with forecasts suggesting GBP/NZD could move down toward 2.10–2.13.
Overall, the survey points to a gradual weakening of the Pound against the New Zealand Dollar rather than a further sustained rise.
The timing of these forecasts is important. GBP/NZD has climbed sharply in recent months, rising from around 2.25 at the beginning of June to above 2.35, its strongest level in almost a year.
The pair gained nearly 4% in June and continued advancing in July, leaving Sterling well above its longer-term average against the Kiwi.
This strong rally helps explain why many banks now believe the risk balance is beginning to shift back in favour of the New Zealand Dollar.
RBNZ Policy Could Provide Support for the Kiwi
The more positive outlook for the New Zealand Dollar is partly linked to changing expectations for monetary policy.
Markets expect the Reserve Bank of New Zealand to maintain relatively restrictive interest rates while inflation remains above target, even though price pressures are expected to ease later in the year.
Meanwhile, the Bank of England is still trying to balance weaker UK economic growth with persistent inflation. This continues to create uncertainty over whether UK interest rates will need to remain high or rise further.
The New Zealand Dollar is also sensitive to global risk sentiment. If geopolitical concerns in the Middle East continue to ease and commodity-linked currencies recover, the Kiwi could receive additional support.
GBP/NZD Outlook: Current Rate May Offer a Buying Opportunity
The latest survey suggests that GBP/NZD may currently be trading above the level most major banks consider fair over the medium term.
Although currency forecasts are never guaranteed, the degree of agreement between institutions is notable.
For travellers, emigrants and businesses that need to purchase New Zealand Dollars during the next year, the current exchange rate may prove favourable if GBP/NZD moves lower as expected.
However, Sterling continues to benefit from relatively high UK interest rates and strong recent momentum. As a result, further short-term gains remain possible before the broader downward trend predicted by banks begins.
Conclusion:
The broad agreement among major banks suggests that GBP/NZD may be overvalued at current levels, making today’s rate potentially attractive for buyers of New Zealand Dollars. Traders should still account for possible short-term Sterling gains before the expected medium-term decline develops.
