Sterling vs Swiss Franc continues to fall as UK economy looks set to struggle (Tom Holian)

According to Bank of England deputy governor Ben Broadbent the drop in the value of Sterling has helped to stop the UK economy from falling further since the shock of the Brexit vote.

He went on to say ‘in the shape of the referendum, we’ve had exactly one of those shocks’ and added that the Bank of England would not interfere with monetary policy to boost the Pound’s value.

This was similar to Bank of England governor Mark Carney’s comments made last week and it appears as though the central bank is not too fussed about the drop in the value of the Pound.

Therefore, I think we could see the Bank of England even considering cutting interest rates from their current historic low of 0.25% at next month’s meeting in order to keep the economy strong.

GBPCHF exchange rates have dropped by as much as 5% since the start of the month in the wake of the announcement that the UK will trigger Article 50 by March 2017.

Clearly a low Pound is not in the interests of the UK economy in the long term especially against the US Dollar as we import so much from overseas. As we saw recently with the stand off between Tesco and Unilever it seems to me that it’s a matter of time before the cost of an average basket of goods goes up for the British consumer.

Having worked in the industry since 2003 I am confident of not only offering you better exchange rates than using your bank but also to help you with the timing of your currency purchase.

If you need to buy or sell Swiss Francs and want to save money on exchange rates compared to using your bank then contact me directly for further information or for a free quote and I look forward to hearing from you.

Tom Holian [email protected]