Bank of England to cut interest rates?
This Thursday it's widely expected that the BoE will either cut interest rates, increase their QE stimulus, or both. I think that it's very likely that they will cut interest rates by 0.25%, and this is already factored in to the current rates. However the markets haven't looked much further than this, and I expect further rate cuts later in the year. Some BoE members have been hinting recently at negative interest rates, and they may well hint at this in their press conference on Friday afternoon. If they do, then expect the Pound to drop away from it's current levels.
Do you need to buy Euros?
The current levels aren't actually that bad. Yes, they have dropped following the referendum, but when you look at the bigger picture and consider that in 2008/2009 rates nearly hit parity, it's not that bad. Indeed the average GBPEUR rate for the last 8 years is around the €1.20 mark, pretty much where they are now. Those that need to buy Euros should consider their options ahead of this weeks BoE decision, as if they do cut rates and hint at further moves, the current levels are going to look extremely attractive in hindsight.
Even if you don't need your currency now, you can lock in the current rate for up to 2 years by lodging 10% of what you want to convert. If you would like to get a quote or find out more about our services, click here.
(Please note we don't deal with cash or holiday money, only bank to bank transfers for amounts of £5k+.)
Are you converting a foreign currency back to Pounds?
The current levels are very good. They might get even better if the BoE cut rates this week, but you shouldn't leave yourself exposed and risk losing out on all the gains we've seen in the last month or so. In this scenario you can place a 'Stop Loss' order. This means you're protected against the rate getting worse, while still allowing you to take advantage of any gains if the rate continues to improve.
Those with a requirement to buy Sterling should click here for a quote and a free consultation on how we can help you obtain the best rates of exchange.
Can we help you with more competitive rates of exchange?
We are one of the UK's leading foreign exchange brokerages, and source rates of exchange for private and business clients that are much better than your bank or existing broker may offer. We can help anyone looking to convert more than £5k+ and have the currency wired to an account by telegraphic transfer, perfect for this buying or selling property, or businesses that make international payments.
Click here to make a free enquiry and discover the rates we have available