The National Institute for Economic and Social Research (NIESR) have warned the UK public that inflation is set to rapidly accelerate due to the fall in sterling. The prediction is for inflation to quadruple to 4% in second half of next year and therefore cut disposable income.
Unfortunately for the UK public if the forecasts are correct everyday purchases such as fuel, food and clothes will become more expensive and therefore living standards are set to fall.
For people purchasing a foreign currency, further bad news could be on the horizon. This Thursday the Bank of England are set to release their latest interest rate decision and many economists have predicted a further cut.
When the Bank of England cut interest rates two months ago from 0.5% to 0.25% the pound lost value against all of the major currencies. Therefore I expect the pound would lose value again if the Bank of England decide to cut this Thursday.
All in all its not looking good for any clients holding onto sterling!
If you are reading this website in order to find out information in regards to buying or selling the pound I can help you achieve the best exchange rates on the market whilst keeping you up to date with economic information. Its important to analyse both currencies that you will be trading therefore I would recommend emailing me with the currency pair (GBPUSD, GBPAUD, GBPCHF etc) the reason for your trade (company invoice, buying a property) and I will email you with my forecast and the process of using our company email@example.com.
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