Wednesday, 14 May 2008

Sterling slides as BOE announce inflation woes

Wednesday mornings trading saw Sterling drop to a three month low against the Dollar after the Bank of England's quarterly report released at 10:30am showed that it appeared inflation would be staying over and above target for some time, and economic growth is dropping at a sharp rate.

The main problem for the BOE is they have rising inflation which could be helped by an interest rate hike, and a sharply slowing economy, which could be helped by an interest rate cut. Sterling dropped as Mervyn King announced that the BOE were having their toughest time since he headed the MPC.

Most analysts are now saying this could reduce the chances of a rate cut in the near future, which in return this could further hurt the economy and thus have a negative effect on the strength of Sterling, therefore if you do have an upcoming currency transfer, get in touch today to discuss the best 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

www.currencies.co.uk

Have a great day and thanks for reading!

Daniel Wright

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