UK Interest Rates down 1% – exchange rate reaction

28 July, 2011


UK Interest rates have been cut a further 1% today, leaving the base rate at just 2%, its lowest since 1951.

Reaction on the foreign exchange markets has been negligible, although this morning Euro exchange rates fell to their lowest since the single currency was launched nearly 10 years ago.

Against the US Dollar, best exchange rates were also down, before a very slight rally for the Pound.

Eurozone interest rates are announced shortly, and we will wait to see the reaction (if any) and implications for Brits needing to send money overseas.