Could the Bank of England raise rates in the near future?

Euro to Pound Exchange Rate Continues Run of Strength

The chances of an interest rate hike coming in the UK appear to be on the increase and I think we could even see the next rate hike coming on 10th May when the Bank of England next meet.

Average earnings are now above inflation and UK unemployment is close to a record low which means that the central bank have a question to answer and that is not if but when will they increase interest rates?

The last time the vote took place we saw a 7-2 vote in favour of keeping interest rates on hold and with MPC member Michael Saunders saying yesterday that he is more than likely to vote for another interest rate hike I think it is only a matter of time before the BoE change monetary policy.

Indeed, although we saw retail sales fall recently I think this was in the main caused by worse weather than expected and therefore can be seen as a blip.

As we go into next week the European Central Bank have their latest decision on interest rates and monetary policy on Thursday.

In recent times the ECB has continued on its course of QE which involves EUR30bn per month and there is a suggestion that this could come to an end by September so any commentary surrounding the subject could cause volatility on GBPEUR exchange rates.

Therefore if you’re considering making a currency transfer over the next week Thursday could cause the most movement so it may be worth getting something organised before then.

Having worked in the industry for 15 years for one of the UK’s longest established currency brokers I am confident of being able to offer you bank beating exchange rates.

For further information then feel free to contact me directly and I look forward to hearing from you.

Tom Holian