With the UK Budget due later today the currency markets are holding their breath in anticipation of what Chancellor George Osborne will announce. The Chancellor has already told his staff that they will need to cut 2% of their departments’ spending for the next two years and the proposed saving of £2.5bn will go to infrastructure plans in order to boost growth in the UK. With Great Britain having lost its triple A credit rating recently and close to possibly dropping into a triple dip recession at the end of this month we are entering a very uncertain period.
Osborne will begin speaking at 1230 UK time so if you are thinking about making a currency transfer please contact me on 01494-787-478 and ask for Tom Holian and I’ll happily provide you with a free quote to exchange currency. The coalition have made the deficit reduction the main focus recently so cuts will likely be in the forefront of the Budget. One important announcement may be a change to the inflation target as set out by the Bank of England. Currently the target is 2% and with inflation having remained above this level for quite some time the Chancellor may look to alter this figure.
Cypriot Banking fears cause fallout across Europe
Overnight in Cyprus political leaders have voted in favour of rejecting an international bailout deal. After the planned levy on savers’ accounts was failed to be approved of in parliament Finance Minister Michael Sarris is currently in Russia trying to seek a deal owing to the amount of Russian investment on the island nation. Banks will continue to remain shut until Thursday in order to avoid a run on the bank.
This morning GBPEUR exchange rates have fallen by over 0.6% so far and GBPUSD by 0.5% as investors remain cautious about the Budget later today. For a free quote or if you want to be alerted to markets spikes please email me directly Tom Holian [email protected] quoting ‘CURRENCY SPIKE ALERT’ in the title of the email.