The European Central Bank has today raised interest rates in the single currency zone, for the first time since July 2008, to 1.25%. The Bank of England in its own meeting today, has kept UK interest rates on hold at 0.5%.
The ECB's move was generally expected, and had been 'priced in' in advance to give a stronger (more expensive) Euro over the last couple of weeks. ECB President Trichet will now give a press conference explaining the move, while we will have to wait 2 weeks to discover how close the Bank of England came to raising UK rates today too.
Interest rates are a key driver of exchange rates, so to discuss the implications on your own transaction, contact us at Currency Index.
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