Yesterday saw both the Consumer Price Index (CPI) and the Retail Price Index (RPI) increase surprisingly, highlighting UK inflation is on the up – a lot of this being attributed to an increase in food prices, however what was not highlighted was that previous introductions of QE can also push inflation higher.
As inflation increases it can raise speculation that the Bank of England (BoE) will raise interest rates to help try and keep inflation in check, although this is unlikely with UK growth so low which leaves the BoE in a difficult position. With the Bank of England minutes from the last interest rate decision due out today it will be interesting to see how the central bank see the UK economy progressing and whether they discussed introducing further Quantitative Easing (QE). Previous talk of QE has led to Sterling exchange rates falling so this mornings news could have a big impact on the exchange rates.
With Sterling Euro exchange rates still close to a 20 month high it could be an excellent time to buy Euros. So, if you are looking for excellent exchange rates make sure you speak to one of our experienced currency brokers today on 0800 328 5884 or email email@example.com.