Sterling Falls On BoE Minutes

This morning we have seen the pound lose ground to all major currencies as borrowing figures were nearly double the forecast. Net public borrowing rose from £8.9 billion in February to £15.2 Billion, much more than the expected £8 billion. This figure will come as a big blow to George Osbourne on the day of his third budget at lunchtime today.

In addition to this the Bank of England minutes from the meet earlier in the month showed 2 members voted for a further increase to Quantitative Easing by another £25 Billion highlighting the Bank could still implement more in coming months. Such a move would almost certainly be a negative move for sterling and we’ve seen the markets adjust for that, increasing the cost of international payments from the UK.

If you have a buying Euro requirement coming up in coming months it may be prudent to look at fixing the exchange rate in case any such move does come from the BoE and the rates drop further. You can fix the rate for up to 2 years, securing your entire Euro requirement for just a small deposit up front. Speak to one of the team at Currency Index to discuss this option in more detail and see if it’s the right choice for your needs.