Pound Euro exchange rate hits 6 month high
The Pound Euro exchange rate has hit its highest level since early December.
In the meantime, the UK economy continues to show small improvements.
The Bank of England has continued to hike interest rates since December 2021.
We have now seen 12 interest rate hikes in a row since the cycle started.
The US has demonstrated that by raising interest rates aggressively, this has helped to combat rising inflation in the world’s leading economy.
However, the difference the UK faces is one caused by rising energy prices.
Although wholesale prices have started to come down gradually the impact this has had on businesses and consumers has been dramatic.
Inflation continues to remain high in the UK
Inflation is still hovering at around 10% and does not appear to be coming down very quickly. The target for both the government and the Bank of England is 2%.
This has caused the Bank of England to continue its policy of rate hikes compared to the European Central Bank.
The ECB has signalled it may slow down its policy of rate hikes and we could see the Bank of England continue its current plans.
This is in part why we have seen Sterling Euro exchange rates challenge 6 month highs.
With interest rates moving up in the UK it makes it an attractive place for the yield.
GBPEUR exchange rates are only 1 cent lower than the highest level to buy Euros with Sterling in over a year.
This has created some excellent buying opportunities for those looking to transfer money to Europe for both living expenses and buying foreign property.
If you would like a free quote when buying or selling Euros compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.
I have worked for one of the UK’s leading currency brokers since 2003 and I’m confident of making the process simple for you.
Email me directly Tom Holian [email protected]