UK and EU interest rates today

The Eurozone’s ECB and UK’s MPC today release their monthly interest rate decisions – the UK at 12.00 and Eurozone at 12.45.

A 0.25% cut in European interest rates (to 1%) is wideley expected, while the Bank of England have no room for manouevre with rates at 0.5% already.

The speculation on Eurozone rate cuts has made sending money to Europe cheaper this week, with a Pound now buying approx €1.13 – so anyone sending money to France, Spain or Portugal will be pleased.

If the ECB do not cut interest rates, we would expect to see some recoil, which would bring the exchange rate back down potentially quite quickly after 12.45 today.