Will the Bank of England raise interest rates?
It is a true reflection of the mixed messages from politics and the economic data in the UK, that we are also getting mixed messages on whether or not the UK will raise interest rates. With the governor of the Bank of England Mark Carney stating now is not the time to be raising interest rates, we have other members voting for a hike and stating publicly now could be the right time for a hike. We are closer to raising interest rates in the UK than we have been for many years and this is helping the pound to avoid the cliff edge it has felt so near to in recent weeks. Sterling is very sensitive to this information and clients buying or selling the pound must be on their guard for sudden changes. If you wish to be kept up to date with any sudden spikes please do email me Jonathan on [email protected] as often rates change for a few minutes before reverting to their original position.
When should I buy my pounds?
If you are selling a foreign currency to buy the pound then hanging on for further large improvements could be costly as it is not just the UK interest rate that is helping the pound. All of the political uncertainty surrounding the UK is making a softer Brexit more likely since the expectation is that the political uncertainty created by this situation makes a harder one trickier. Whilst the more obvious outlook for the pound is based on a downward spiral, a surprise spike or lack of further downward movement cannot be easily discounted.
Clients selling a foreign currency to buy the pound could potentially easily be caught on the wrong side of a rising pound and losing out on the amazing improvements they have had. If you are holding Euros, US dollars, Australian dollars or Canadian dollars you are very close to multi year highs to buy the pound. Expecting the rate to continue to improve could prove very costly as just lately the shifts in sentiments will make a further deterioration difficult to rely too much on.
If you are looking to make a transfer timing is everything! On amounts of £10,000 to multi millions I am positive I can offer you some expert insight to help with the timing and planning of any deals for the future. For more information at no cost or obligation please contact me Jonathan Watson by emailing [email protected].
Thank you for reading and I look forward to hearing from you and assisting with your transfer.