The only member of the bank's Monetary Policy Committee (MPC) who favoured a cut was David Blanchflower, who wanted a reduction to 4.75%.Inflation has risen in recent months, driven by high oil and food prices, making policymakers reluctant to cut rates despite the cooling economy.
Analysts now say an interest rate cut is unlikely any time soon. However, this does not mean Sterlings slide will halt any time soon. The reason rate cuts are unlikely now to happen, is that inflation is high. However as mentioned in yesterdays report, it is likely that the housing market will suffer, meaning the UK faces the real risk of a recession.
To further add to Sterling woes, anaylsts are pointing to possible rate hikes in the EU, which will strengthen the Euro making it more expensive, and brining the rate further down. So, the notes have changed but the music still sounds the same, and is singing a song of Sterling woe. If you have an upcoming requirement, get in touch today to discuss the options available to you.
This is a brief summary of todays report. Click here to read the full report on our main website
If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me
Have a great day and thanks for reading!
Daniel Wright
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