GBPEUR rates hit fresh 2 year highs this week following speculation that the bank of England will raise interest rates sooner than thought. Inflation climbed and unemployment full in the UK giving the BOE more scope to bring forward a rate hike. It is now thought that this will happen in the UK this side of Christmas and is why GBPEUR rates have SPIKED. European news has not helped either as they continue to publish nothing exciting and giving no confidence in their economic situation. It was only last week that a ripple of worries went across Europe when a Portugal bank was unearthed as fudging figures.
My personal view – I think levels now are the highest we will see for 6 weeks or close to it. Longer term rates could go higher still at the end of the year.
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