After a recent surge for Sterling against the Aussie Dollar getting closer and close to 1.70 the Bank of England announcement at midday has put an abrupt halt to proceedings. The Bank of England announced that it would be wrong for markets to expect UK interest rates to rise in the near future. Currently Sterling has fallen by over 2% against the Australian Dollar from the high to low during today’s trading session.
The decision today was the first since Mark Carney’s new reign as Governor of the BoE. The UK economy has shown lots of signs of recovery including a six year high on business confidence and a 2 year high on PMI services so part of Carney’s decision was that monetary policy should stay the same at the moment for fear of jeopardising the recovery.
The MPC did say however that ‘the recovery remains weak by historical standards and a degree of slack is expected to persist for some time.’ The BoE has kept interest rates on hold at their current low level brought in March 2009.
If you are thinking about making a currency transfer with Australian Dollars and would like to get a quote then feel free to get in touch directly via email Tom Holian [email protected]