Sterling rises against kiwi after RBNZ's plans

Sterling experienced choppy trading against the New Zealand dollar yesterday.

• The pound rose against the kiwi dollar in the early morning, after the Reserve Bank of New Zealand announced details of new liquidity requirements for domestic banks, which may increase the cost of lending by 10 to 20 basis points.
  
• However, sterling began to weaken before the release of revised British GDP figures, and continued to fall after the figures revealed that the British economy contracted more sharply than previously estimated, with GDP showing a quarterly decline of 2.4% compared with the previous estimate of a 1.9% decline.