Bank of England report sends sterling plummeting

28 July, 2011


The Bank of England’s quarterly inflation report has sent jitters through markets, with predictions that inflation & interest rates are likely to stay low for the rest of 2010.

Low interest rates usually mean a weak currency, and analysts had expected UK interest rates to start increasing towards the end of 2010.

The Bank of England has moved to dampen these expectations, and the Pound has fallen across the board this morning in reaction.

Good news if you are sending money back to the UK, but for those of you buying property abroad, do contact your currency company straight away if you are worried about falling exchange rates.