Bets in favour of the Bank of England hiking interest rates in the UK this year slid yesterday, after the UK inflation data released showed a drop in the cost of living in the UK.
Markets weren’t expecting this, and the Pound’s trend appears to have reversed after losing almost 10-cents against the Australian Dollar over the last month or so.
The markets had expected to see an interest rate hike two-weeks ago today after the UK economy had been showing some positive signs, but the drop in economic growth (its fallen to a 5-year low according to the latest GDP figures) has put the brakes on these plans.
Some economists are now predicting that it may not be until November this year until the next hike happens and that will of course be determined by how the UK economy performs.
There haven’t been a lot of reasons for the Aussie Dollar strength and I think the recent price changes can be put down to the Pound’s weakness. There aren’t expected to be any rate hikes down under this year and the Australian economy has also demonstrated signs of a slowdown.
The current GBP/AUD level is trading at a 2-month low, and if you wish to be updated in the event of a spike in the price do feel free to register your interest.
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.