Bank Of England's Nasty Surprise For Sterling
Yesterday the Bank of England's Monetary Policy Committee voted 7-2 to leave interest rates unchanged. So rates remain on hold for the 15th month in a row. A pretty underwhelming announcement; marking a non-newsworthy event, right? Wrong! Not in the world of foreign exchange anyway!
Because the two dissenting members of the MPC voted for an interest rate cut. And that, combined with the Bank's downgrading of its forecast for the UK economy caused Sterling to fall to a two week low against most majors. Next week the forex market is braced for UK Quarterly GDP figures due at 9.30am on Monday. The forecast is 0.4% growth. Anything less than that is likely to cause further Sterling weakness.
To discuss how the above may affect your money transfer requirements, please contact your Currency Dealer at Heritage Pay on +44 (0) 203 858 7274.
See you next week!