The Pound Euro exchange rate has slowly started to increase in value during the course of the week after a slow start.
Bank of England governor Andrew Bailey suggested at the recent change of policy that the UK is heading for the worst recession in its history.
This caused the Pound to weaken but since then we have seen gradual gains vs the Euro, which has led to some good opportunities for anyone looking to send money to Europe at the moment.
The Bank of England has also suggested that the recession could be the longest on record as interest rates continue to rise to combat rising inflation with mortgage rates now much higher than earlier this year.
Autumn Statement
Next week brings with it the latest Autumn Statement by current Chancellor Jeremy Hunt.
He was quoted recently saying about the UK economy that it will need ‘extremely difficult decisions to restore confidence and economic stability.’
Therefore, is he sending out a warning in advance of the announcement next week? The chances are that tax rises are due to come with a cut to public spending.
Neither of these make great reading in my opinion.
However, what is important to bear in mind that the UK is not the only country facing such tough times.
Part of the issue that the Eurozone faces is that it is made up of so many countries with different types of economies.
At least in the UK, if the Bank of England does want to act it can be so quickly and effectively.
If we take a look at the continent it is difficult for the European Central Bank to act so quickly as it needs to take into account the different nations.
For example, what might work in Germany in terms of economic policy may not work in Greece.
Therefore, it could be argued that although we are facing an unprecedented period in our economic history we are able to have an impact on our destiny.
Indeed, the US announced yesterday that inflation has started to fall compared to the prediction.
This could be argued that the interest policy adopted by the US Federal Reserve has worked and if we follow the same path then we too could start to see inflation falling.
If you have a currency transfer to make and would like a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]
