CurrencyIndex.co.uk

Foreign Currency Exchange Specialists

Wednesday, 18 August 2010

Bank of England minutes reveal no surprises

This morning's minutes from the Bank of England's interest rate setting committee showed that 8 of the 9 members voted to keep interest rates on hold.

UK interest rates have now been at 0.5% for 17 months.

Currencies are linked strongly to interest rate rises, so anybody hoping for better exchange rates for sending money abroad, will want interest rates to go up sooner rather than later.

Following the Bank's assessment last week that inflation is likely to fall, and that we are in for a "choppy" recovery, we are unfortunately unlikely to see an interest rate rise in the short to medium term.

No comments: