Market Rules Out UK Interest Rate IncreaseFebruary 12, 2016 2:33 pm
Last week The Bank of England decided to not make any changes to the current interest rates. Mortgage rates have now hit a 9 year record low, although banks are increasing mortgage fees to still protect their margins.
The Bank of England Governor Mark Carney also mentioned that rates will remain low for longer than expected, with a rise forecast for 2017 at the earliest. Sterling has been weak against other currencies and will probably remain this way until the interest rates increase.
Placing a Profit Order can help secure your rate and monitor the market for you on your behalf. This ensures if your desired rate becomes available you will not miss out with the volatile markets at the moment.
The GBP vs EUR exchange rate has experienced its longest downward trend in 2016. The exchange rate has fallen below 1.30 for the first time in many months. Good news if you are looking to sell your EUR and bring them back to the UK as the rate is well within your favour at the moment. The EUR continues to remain weak against the USD and forecasters predict this will continue through to 2017.
There has been a lot of speculation around the Federal Reserve System about considering negative interest rates. Recent news to cut borrowing costs below zero by Central Banks in Europe have shown this can be done.
The Federal Reserve have not yet commented on this, should negative interest rates happen in the US, the currency would be extremely volatile. If you are holding USD, now might be a good time to take advantage of the exchange rate and convert into other currencies.euro exchange rate, interest rate increase, uk interest rates
Categorised in: News
This post was written by Kayleigh Driscoll