Pound Poised for Rate Decision Today

March 21, 2024 Vicky Vich

The Pound will be in the spotlight today…

It’s time for the latest Bank of England rate decision.

While no shift in interest rates is expected, it will still be a pivotal event.

To recap, the UK just released the lowest inflation level for 2 ½ years.

You might think that would be enough for the Bank of England to cut rates, but I suspect they will still speak in hushed, cautious tones.

Other central banks have been rolling out the “higher for longer” talk over the past few days and I don’t see the Bank of England being any different.

Markets are expecting the first UK rate cut to come in August (5 months away).

Interestingly, the European Central Bank is expected to cut in June – 2 months before the Bank of England.

If that transpires, we see the Euro softening from here.

GBP/EUR is being held in a tight range at the moment. But history tells us exchange rates don’t tend to stay stable for long.

GBP/USD has retreated a little after hitting 7-month highs last week.

If you have any upcoming currency requirements, please do get in touch.

We can monitor market trends for you and let you know when the rate moves in your favour.

Call us on 01872 487 500 to speak to a member of our team.

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