The New Zealand dollar jumped to its highest in more than two weeks against the British pound after the Bank of England cut interest rates and delivered a bigger stimulus package than the market expected.
The kiwi rose as high as 54.87 pence, trading at 54.69 pence at 8am in Wellington from 53.77 pence yesterday. It edged up to 71.78 US cents from 71.69 cents yesterday.
The Bank of England cut the bank rate a quarter point to a new record low 0.25 percent and said it would buy up to 10 billion pounds of UK corporate debt and expand its asset purchase programme of UK government bonds by 60 billion pounds.
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Investors had expected the interest rate cut, but the size of new quantitative easing took them by surprise, pushing the sterling down 1.6 percent and triggering a 1.6 percent rally in UK stocks.