According to a report published by Ernt & Young, expectations are that we could see two interest rate hikes during the course of this year and possibly two further rate hikes coming next year as well.
Mark Carney has been fairly vocal recently and has confirmed that a rate hike is likely but didn’t say when and this could mean next month’s rate hike may not now happen after all.
However, as far as I’m concerned I think that the British economy has provided enough evidence for the justification of a rate hike to come.
Unemployment is very low and close to the lowest on record and average earnings appear to be outpacing inflation levels which means consumers have more to spend and therefore confidence in likely to rise.
One of the main sticking points that are keeping interest rates relatively low at the moment is that of the Brexit topic which continues to keep the Pound under pressure in the longer term.
MPC member Michael Saunders came out on Friday to announce that he’s more than likely to vote for raising interest rates next month when the Bank of England meets on 10th May.
One of the other problems in raising interest rates too quickly is the effect of what may happen to those with mortgages but at the moment a large number of individuals are on fixed rate mortgages.
I’m confident that the central bank will raise interest rates next month and even if they do not I think the overall tone will be that one will be coming very quickly and I think this could give the Pound a boost.
Having worked in the industry for 15 years for one of the UK’s longest established currency brokers I am confident of being able to offer you bank beating exchange rates.
For further information then feel free to contact me directly and I look forward to hearing from you.
Tom Holian [email protected]