Navigating GBP Weakness

The NZD hasn't been particularly strong but the GBP has been the weakest major currency this year as there is talk in the UK of negative interest rates.

Investors have become increasingly concerned about the lack of progress in talks between the EU and the UK on their future relationship. The UK, has said it would walk away from negotiations if there were no clear outline for an agreement by June.

The Bank of England has predicted the crisis could push the UK into its worst recession for 300 years and they have said they are looking at negative interest rates as an option.

Although we don't expect negative interest rates we can see that UK has rising debt compared to GDP and it currently stands at 87% and rising fast. By contrast New Zealand has 19% debt to GDP.

We want the UK to do well and for GBP to be strong but there is more risk attached to GBP than NZD. The simple reason is the UK has a worse health crisis, and starting from a significantly worse financial position.

If you have funds in GBP to move to New Zealand it's best to move sooner than later. You might not want to move all funds in one go but you could split the transfer up into 3 and space them 2 weeks apart. Just get the average over the next 6 weeks.

If you have a UK pension, it's best to move ASAP because the transfer process can take 6 months. We're here if you want free independent advice on pensions and happy to talk on any other matters.