Will the Bank of England raise interest rates in November?

Bank of England Announces Emergency 50bps Rate Cut

In recent weeks sterling exchange rates have been on the charge due to the change in sentiment from the Bank of England. The monetary policy committee headed by Governor Mark Carney have insinuated that an interest rate hike is likely in the near future due to recent economic data, in particular the inflation numbers that were released at 2.9%.

The theory behind it is if the Bank of England raise interest rates then inflation should stop rising as people begin to save and not spend. When a central bank raises interest rates you tend to see investment into that currency and it therefore strengthens and in this case makes buying foreign currency cheaper.

Our regular readers will know that currency fluctuations occur from an actual event but also speculation. This is the reason why the pound is up against most major currencies by 4-6% in the last 4-8 weeks.

Personally I don’t believe interest rates will be hiked this year. Inflation is outpacing wage growth which is putting a strain on the UK publics pocket and an interest rate hike would only make this worse. Couple this with Brexit negotiations appearing to be stalling in my opinion there is to much uncertainty surrounding the pound.

When buying or selling the Pound its important to analyse both currencies that you will be trading (GBPUSD, GBPAUD, GBPEUR) as different strategies should be used for different currency pairs.

If you would like to save as much money as possible feel free to email me with the currency pair you are looking to trade and the time-scales you are working too and I will email you with my forecast and the process of using our company [email protected]

As a company we pride ourselves in the ability to get you a better exchange rate than your current currency provider or your bank. In addition we can outline your options and the potential future events, which will impact your exchange rate. This will help you to make informed and educated decisions.