The Bank of England (BoE) yesterday announced their latest set of minutes from the last interest rate decision where they announced they had implemented a further round of Quantitative Easing (QE) to the tune of £50 billion. The minutes however showed that while QE was voted for there were two members of the BoE that voted for a £75 billion injection which has given rise to speculation that the Central Bank could announce further QE in the coming months and as a result the Pound has weakened significantly especially against the Euro. QE is the injection of more money into an economy which means that as the supply of currency increases its value decreases simply because their is more money in the system making it less valuable. So, while the UK edges closer to recession and the possibility that the BoE could announce yet more QE the outlook for the Pound has very quickly turned bleak.
At the start of this year we witnessed some of the highest GBP/EUR exchange rates for some time but this news has since sent the rates down showing just how quickly the markets can turn. If you need to transfer money abroad and are looking for fantastic exchange rates contact us today so one of our experienced currency broker can discuss your requirement and all the options available to you – helping to time your exchange to achieve the best rate. You can call straight through to our dealing floor on 0800 328 5884 / 0044 1494 725353 or email us at email@example.com.