Interest rates held in the UK, Eurozone and Canada

8 March, 2012


Today’s interest rate decisions have not thrown up any surprises, and Quantitative Easing in the UK has remained the same.

Interest rates, which are a key factor in exchange rate fluctuations, have been held steady in the UK (0.5%), Eurozone (1%) and Canada (1%). QE, which tends to hurt the Pound, has been held too.

ECB President Draghi is speaking this afternoon, and markets will be nervous ahead of tonight’s Greek bond swap deal deadline. For now, sterling is up against the US Dollar and down against the Euro, which may strengthen further tonight if the final hurdle for Greece’s bailout is overcome. Sending money to Japan is also slightly cheaper, with the Yen 1% lower against sterling.