UK inflation data has this morning come out a lot lower than expected with a figure of just 0.5% compared to the consensus of 0.7%.
This has seen Sterling fall across the board this morning and against the AUD Sterling has fallen by a cent from the high to low which is good news for Australian Dollar sellers.
The UK inflation rate is now its lowest on record which has been helped by falling fuel prices so personally I am not too surprised to see the headline figure of inflation fall as much as it has today.
The impact this has on exchange rates is that if inflation is low then the Bank of England are much less likely to increase interest rates and for me I think it is unlikely that we’ll see a rate rise during 2015.
Indeed, there are now almost 100 UK mortgages that can be fixed for 10 years compared to a handful over the last few years signalling that UK interest rates will stay the same for a long period of time.
If you have a currency transfer to make and want to save money on exchange rates compared to using your bank then contact me directly for a free quote. Tom Holian [email protected]