According to one Bank of England policy maker Martin Weale UK interest rates are likely to rise by spring 2015 but could come sooner if wage inflation rises as well as the standard measure of inflation.
Interest rates in the UK have remained at 0.5% since 2008 and with the UK growth forecast having been upgraded a number of times recently this has led to the Pound strengthening against the Australian Dollar.
Previously Bank of England governor Mark Carney had suggested that UK interest rates would go up once unemployment hit below 7% but with the jobs market improving over the last few months this means they would have to raise rates much sooner than first expected. Therefore, the recent stance is that the jobs data would not be used as a reason to change interest rates.
UK Retail Sales have just come out slightly lower than expected for year on year and month on month but they are still high at 4.3% growth over 12 months. The British economy has gone from strength to strength over the last year and this is why we have seen GBPAUD go in an upwards direction.
Chinese data from yesterday has kept the Aussie Dollar weak and with unemployment down under not looking good we could see further losses going into next week.
If you have a currency transfer to make and want to save money on AUD exchange rates compared to using your bank then contact me directly Tom Holian [email protected]