UK Economy Forecast Improves

There was some positive news for the UK today as the International Monetary Fund (IMF) raised their growth forecast for the UK economy to 0.9% from a previously predicted 0.7%. This news will come as good news not just for Sterling exchange rates but also for the UK government and the Bank of England who will feel somewhat vindicated for their current policies which seem to have helped the fortunes of the economy. This positive news could also bring some much needed good news for Sterling which has recently weakened significantly following comments from the new Bank of England Governor Mark Carney. Carney stated that interest rates in the UK would need to remain low for the foreseeable future and there is still no certainty over the future prospects of the central bank’s Quantitative Easing (QE) programme, all of which has seen Sterling exchange rates suffer. In fact Sterling Euro has fallen well over a cent in the last couple of days which does present some excellent opportunities for those clients looking to sell Euros but is not such good news for clients looking to buy EUR.

In my opinion I would not be surprised to see Sterling remain low for sometime, in fact we may even see rates fall further especially if Carney continues to dampen hopes of interest rate rises and an end to QE. So, if you need to send money abroad and you are looking for the best exchange rates make sure you speak with one of our friendly currency brokers who will be happy to discuss your currency requirements and the different options available to you. You can call us for free on 0800 328 5884 or alternatively you can email me directly on trh@currencies.co.uk