Inflation falls at record rate – Pound vulnerable to further losses

28 July, 2011


Inflation figures out today showed UK prices in October grew 4.5%, down from September’s record levels of 5.2%.

Falling inflation will make the Bank of England more likely to cut interest rates, which could lead to an even weaker Pound and therefore worse exchange rates for those of you needing to send money abroad.

Initial reaction on the FX markets has been guarded, so consider securing your exchange rate before the next Bank of England interest rate decision in just over 2 weeks.

Don’t forget that commercial foreign exchange brokers can normally achieve better rates than you would get from your bank.