The Pound rose sharply today against all major currency pairs after comments from the governor of the Bank of England buoyed the markets.
Up until lunchtime today it had appeared that the Bank of England hadn’t planned on hiking interest rates in the UK until 2019, but that changed this afternoon after a number of comments from Mark Carney (the governor of the Bank of England) hit the financial headlines.
After a higher than expected inflation figure earlier this week, the Pound had climbed slightly on hopes that the BoE would act sooner, and today those hopes materialised which is why we’re seeing the Pound climb so steeply.
Generally speaking, an interest rate hike is considered a positive for the underlying currency in question, hence the sharp rise as the markets mere mostly shocked.
Carney stated that the possibility of a rate hike has increased, and that rates may need to be adjusted in the coming months. He also stated that that he was among the majority of the Monetary Policy Committee members that believe some withdrawal of monetary stimulus will be needed in the coming months.
With comments such as these I expect to see the Pound continue to climb from its current levels, especially if they continue and the rate hikes are carried out.
If you have a large 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 (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.