Bank of England surprise the markets by keeping interest rates on hold

Bank of England keeps interest rates on hold

The Bank of England kept interest rates on hold yesterday after 14 consecutive interest rate hikes.

On Wednesday morning we saw UK inflation coming out lower than expected.

This caused the Pound to fall to its lowest level against the Euro since the end of May.

This has created some excellent opportunities for anyone looking to sell Euros to buy Pounds.

The members of the Monetary Policy Committee voted 5-4 in favour of keeping interest rates on hold.

Therefore, could this be the end of the central bank’s current monetary policy cycle?

Oil prices have also risen dramatically over the last two months so I suspect we could see inflation rising again in the next few months.

If this does happen we could see the Bank of England being put under pressure to manage rising inflation by hiking rates again.

As the decision was so close this caused the Pound to lose confidence causing it to fall briefly.

However, the drop was short lived and the market appears to have rebalanced itself.

GBPEUR exchange rates are now where we were trading prior to the announcement yesterday.

Pound falls to lowest level vs the US Dollar in 6 months

The Pound vs the US Dollar has now fallen to its lowest level to buy US Dollars in six months.

We have see more and more enquiries from clients looking to sell Dollars into Pounds recently.

The US Dollar is also trading very well vs the Euro which has also seen an increase in people moving money from Dollars into both Pounds and Euros.

If you would like more information about what is happening in the currency markets then contact me directly.

I have worked for one of the UK’s largest currency brokers for 20 years and I’m confident I can help save you money compared to you using your bank to buy currency.

Email me directly Tom Holian [email protected]

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