Will the Bank of England cut interest rates this Thursday? (Tom Holian)

Sterling Euro exchange rates have had a mixed week so far as rumours are that the Bank of England are gearing up for an interest rate cut on Thursday.

Last month the Monetary Policy Committee voted in favour of keeping interest rates on hold at 8-1.

However, the main reason why the vote was unanimous was owing to the fact that new Prime Minister Theresa May was announced just 24 hours prior to the vote.

At the time Sterling Euro exchange rates were in the midst of a tailspin and with May coming in this helped to stabilize the Pound vs the Euro.

However, economic data that has been published since the Brexit has been generally rather concerning.

Indeed, UK consumer confidence has hit its lowest level since 1990 and a recent survey produced by the Confederation of British Industry has put business outlook levels at their lowest since 2012.

Generally speaking the outlook for Sterling is rather negative at the moment and if the BoE does cut interest rates, increase Quantitative Easing or even a combination of both this could cause the Pound to plummet rather quickly against the single currency.

If the central bank keep things as the status quo then this could help the Pound but personally I think we’ll see some form of intervention and this is likely to cause Sterling to fall vs the Euro based on historical events.

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.