Between state visits, interest rates, and economic news, last week was a busy one for the pound. Sterling weakened by about a third of a cent against the euro, and while that represented just a minor dip, it was enough to send the pound to its lowest level in five weeks.
Things are certainly precarious at the moment. Truth be told, it could be a rocky road in the two months between now and the autumn budget. To protect your money, and to enjoy some peace of mind heading into the end of the year, we strongly recommend you lock in today’s rate. Just call 020 8003 4915 and one of our account managers will be happy to assist you.
US President Donald Trump touched down in the UK for his unprecedented second state visit last week. It was dinner jackets, bearskin hats and fancy dinners for the most part, but some significant business was squeezed in alongside the pageantry. Sir Keir Starmer received a timely pay-off for all his schmoozing with a major commitment of US tech investment.
You may have also seen that the Bank of England kept interest rates at 4% last week. Frustrating for homeowners and borrowers, no doubt, but the Bank is sticking diligently to its task of controlling inflation, still running at almost double the target level.
The effect this is having on regular people is clear. As consumer confidence dips and the economy appears wobbly, households piled a record figure into individual savings accounts (Isas) in the 2023-2024 tax year. The £100 billion saved in these accounts marked a 67% increase from the previous year.
Outside of some industry data and a few central banker speeches this week, there don’t appear to be too many obvious banana peels for the pound to trip over. However, don’t bet on sterling remaining stable. The notoriously stroppy bond market launched another dust-up over government spending and there’s still plenty of time for turbulence given the autumn budget (26 November) is over two months away.
