Best Pound to Australian Dollar Rate in Two Weeks on Dovish RBA Rate Cut

May 20, 2025 - Written by Tim Boyer

STORY LINK Best Pound to Australian Dollar Rate in Two Weeks on Dovish RBA Rate Cut

The Australian dollar dipped after the latest Reserve Bank of Australia (RBA) rate cut with markets also continuing to monitor the global investment environment.

The Australian dollar to Dollar (AUD/USD) exchange rate dipped to 0.6410 from near 0.6460.

The Pound to Australian dollar (GBP/AUD) exchange rate advanced to 2-week highs around 2.0850.

The RBA cut interest rates by 25 basis points to a 2-year low of 3.85% which was in line with strong consensus forecasts.

The bank noted progress in meeting the inflation target and global uncertainty from US trade policy.

According to the bank; "Inflation is in the target band and upside risks appear to have diminished as international developments are expected to weigh on the economy.”

The bank did discuss whether it should sanction a larger 50 basis-point cut at this meeting which hurt the Australian currency.


Markets are pricing in at least two further cuts this year while the RBA assumed rates would decline to around 3.25%.

Saxo Chief Investment Strategist Charu Chanana commented; "The RBA delivered a dovish rate cut, weighed down by a cocktail of global and domestic uncertainties."

She added; "With the RBA sounding increasingly uneasy, the path of least resistance for the Aussie may remain lower, especially if domestic data softens further or global risks flare up again."

ING commented; “With the USD having to face the reality of the economic damage already dealt, AUD/USD may find some support in the coming weeks.”

The bank, however, expects underlying forces will be close to balance; “With the jury still out on global demand as the tariff war rumbles on, we think AUD/USD can remain pretty steady near 0.65 over the coming quarters.

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TAGS: Pound Australian Dollar Forecasts