And how will it affect us........ Foreign Currency Direct's Amelia Spencer gives us her view on what could happen and why when the Governor of the Bank of England meets with his colleagues in November to discuss whether or not to raise the interest rate, and what you might be able to do to mitigate any possible losses.
The Pound received a major boost towards the end of September, following from numerous hints from the Bank of England that an increase in Interest Rates in the UK could be seen as early as November. This has meant that interbank GBP/EUR rates have fluctuated by over 5% over the course of September, and clients purchasing Euros have potentially saved themselves over £9,000 on a €200,000 purchase if timed at the highest point of the month.
The general consensus is that there is a 50% chance of a rate hike at the next Bank of England Interest Rate meeting in November, however this is purely based on indications from Governor Mark Carney, rather than concrete facts. If October brings a wave of poor UK economic data and/or the bank decide to keep rates on hold, we could see Sterling drop back down to the near 10 year lows witnessed just a month ago. If, however, the bank do decide to raise rates in November, this could create further losses for clients selling properties to repatriate their funds back to the UK. Add into the equation the ongoing topic of Brexit negotiations, which are still hanging in the balance, the next month could prove a particularly volatile one for both buyers and sellers alike.
Here at Foreign Currency Direct, our team of helpful traders have an average tenure of over 8 years and are perfectly positioned to help you to time your transfer to help you to get the most for your money. One option available to our clients is to secure your currency through the use of a Forward Contract, which allows you to book the whole amount required at today’s exchange rate, for just a small deposit.
If you would like to hear more about how we can help with transferring currency for buying or selling a French property, or for any other currency requirements, please click here to open a free, no obligation account with us, and a member of our team will be in touch.