The Pound has hit its best rate to buy Australian Dollars since early July after the Bank of England voting 7-2 in favour of keeping interest rates on hold this month.
Clearly there is a sustained appetite for raising interest rates in the UK and with inflation rising as shown on Tuesday the typical decision to combat rising inflation is to increase interest rates.
Bank of England governor Mark Carney has now suggested an interest rate hike may be coming but did not say when. He went on to claim that with UK economic growth better than expected combined with record low levels of unemployment the UK could be facing an interest rate hike sooner than the markets currently expect.
We saw huge jumps for GBPAUD exchange rates towards the end of last week following Thursday’s meeting and I think we could see further gains into the early part of next week.
Theresa May is also set to address the markets next Friday when she visits Florence to set out her goals for a post-Brexit Britain and about the UK ‘leaving the EU but not leaving Europe.’
Therefore, we could see a huge amount of volatility next Friday so if you’re concerned about a lot of movement and just want to get something arranged prior to this date then contact me directly for a free quote.
If you have a currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency.
A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Tom Holian) on [email protected] and I will endeavour to get back to you as soon as I can.