The Bank of England has decided to cut interest rates to their lowest level in history at just 0.25%.
The interest rate cut did not come as too much of a surprise and the results confirmed a 9-0 vote in favour of cutting interest rates.
GBPCHF exchange rates fell dramatically as soon as the announcement was made as it highlights the problems that the British economy is facing following the UK’s decision to vote to leave the European Union.
The uncertainty surrounding the Brexit period both before and afterwards has caused a huge lack of investment in the UK economy and consumer confidence levels have fallen to their lowest levels since 1990.
The Bank of England also confirmed that they would be increasing Quantitative Easing by £60bn bringing the total to £435bn.
The Quarterly Inflation Report also suggested that the Bank of England may look at cutting interest rates again later this year and this could see further losses for Sterling against all major currencies including the Swiss Franc.
If you’re worried about what may happen to exchange rates between Sterling and the Swiss Franc and need to buy your currency but do not have the full amount of funds available you may wish to consider buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]
I look forward to hearing from you.