Bank of England raised interest rate to its highest point since March 2009

3 August, 2018

Pratheep Prabaharan

Yesterday the Bank of England announced a rise in the interest rate. The rate has risen by a quarter of a percentage point, from 0.5% to 0.75% and this is the highest point in nearly a decade.

Markets predicted that the bank will raise interest rates from 0.25% to 0.75% and the result appeared to have already been priced into the current rates hence why the market didn’t react too much after the announcement. Even though the announcement was positive, we didn’t see much movement in the GBPEUR rate. The rate hiked by nearly half a cent and instantly dropped back to where we started.

Brexit uncertainty has a major impact on the rate hence why the pound is weak. Saying that – the rate is holding its ground regardless of Brexit uncertainty and not far off the best rate we’ve had in the last 12 months.

If you’re buying a property overseas then it’s worth securing your cost ahead of purchase whilst the rate is holding strong regardless of Brexit battle and other factors. There are no major events scheduled for the next couple of weeks to push the GBPEUR rate up and it’s likely that the rates will continue to remain at these current levels with fears that we could still see things get much worse before they get better. Get in touch with your Account Manager today for a friendly chat on how you can save money on your currency transfer.

We’ve been in the business for over 10 years, therefore, we can confidently give you information and personal guidance to secure your cost ahead of an overseas property purchase and help you save money on your currency transfer.