Pound falls on Interest Rate News
Sterling/Euro rates have slipped to the lowest we've seen for a week or so, after the Bank of England governor said this morning that they would not be raising interest rates any time soon. There had been some speculation that they would look to increase the base rate due to rising inflation.
2 members of the BoE's monetary policy committee did vote for a hike last week, but the majority decided to keep rates on hold. It's probably the case that due to slowing wage growth and concerns about what effect Brexit would have on the economy that swayed their decision.
With interest rates likely to remain at a record low of 0.25% for the foreseeable future, the Pound fell due to the fact only a very low return is on offer for investors.
Political Uncertainty & Brexit
Elsewhere, 10 days after the election Theresa May is still to formally announce that they will form a government with the backing of
the DUP. Brexit negotiations also started yesterday, but nothing much
has happened so far other than initial soundbites from the UK and EU
sides that they both want to agree a deal. In the coming weeks, it will
become clearer how these negotiations are going, and any sign that they
are strained will likely send the Pound lower.
So all in all since my last post, much remains the same. Political uncertain, Brexit uncertainty, and a weak Pound. The current period for Sterling/Euro rates is the least volatile I can remember for quite some time, with the GBP/EUR rate remaining around the €1.14 level. I don't expect this calm to continue however, and whether the Pound/Euro rate will go up or down in the coming weeks or months is going to be almost entirely driven by how the Brexit talks go.
Looking for the best exchange rates?
We can help if you need to make a large currency transfer and are looking for the most competitive rates. We offer exceptional exchange rates that are very close to the published 'mid-market' level. We also have various contract types to help protect against rates moving the wrong way.
Typical clients we can help are those buying/selling property overseas and need to make a large transfer of Euros. We also help business clients that import/export or need to make payments in foreign currencies. If you would like to find out more about what we do, and get a free quote on the rate we can offer, click here or complete the form below to make a free enquiry today.
I'm afraid we do not offer cash or holiday money, and can only offer FX on a bank to bank transfer basis i.e. when you purchase currency, we transfer it via bank transfer to an account in Euros, Dollars etc.
