Today at midday the Bank of England are due to announce their latest interest rate decision and while the expectation is that there will be no change all eyes will be on whether the Central Bank will introduce further Quantitative Easing (QE). The majority of analysts do not expect an increase in QE however there is still an outside chance and as we have seen before any increase in QE can have a detrimental effect on Sterling exchange rates so even though it is only an outside chance of an increase in QE for anyone with a currency transfer involving Sterling will want to stay in close contact with their currency broker.
In other news today Halifax has stated that UK house prices will end the year at the same level as now due to the challenging economic conditions. The Halifax stated that house prices have fallen by 0.1% compared to the same time last year and said that we can expect similar small changes throughout the year. As it has been mentioned before on this currency blog the UK housing market can have a large impact on Pound Sterling exchange rates because so many people have money tied up in bricks and mortar and therefore a fall in house prices often means less houses on the market, less sales and as a result less money in the UK economy. So, if we are to get out of recession it is important to see the housing market making a positive improvement and if this does not happen the UK and Sterling exchange rates could remain weak for some time to come.
If you need to send money internationally and are looking for exceptional exchange rates make sure you speak to Foreign Currency Direct today, so one of our experienced currency brokers can discuss your currency requirements and all the options available to you. You can call straight through to our trading floor for free on 0800 328 5884 or email us on firstname.lastname@example.org.