Sterling has bounced up close to its highest against the euro for a year, as hopes rise among institutional investors – if no-one else – that the Bank of England will continue to raise interest rates.
While the Bank of England’s chief economist was last week talking about UK interest rates possibly looking like Table Mountain, a sharp rise then a long flat period and then a fall, the previous incumbent of his post, Andy Haldane was admitting to Sky News that they fuelled inflation by “printing money for too long… doing too much for a little too long.”
Central bankers face an unenviable task of being unable to predict the future but being blamed anyway if things go wrong.
He also said that most mortgage holders had not realised what was coming down the road, that they face a shock next year and the country had a 50-50 chance of tipping into a sharp recession.
For property buyers abroad – or anyone with a major transaction in a different currency – having the luxury of being able to fix your exchange rate for the year ahead, and know exactly how much money you will have to spend for the next 12 months in euros or dollars, is incredibly valuable.
At Smart Currency, your trader will work with you, discussing your timescales and budgets, all with the objective of ensuring that you have enough money to fulfil your plans, with no risk of being unable to complete on a property if the rate moves against you. Plus, with Smart Currency you have the rare, these days, “luxury”, of being able to just give us a call on 020 7898 0541.
For now, the pound is riding high, but as the country’s recent chief economist noted, nobody knows what is coming down the line.
