UK interest rates.

[Chaddy]

Its been wildly reported that that the Bank of England are likely to raise interest rates this month due to a better than expected economy.If this happens the pound will gain some strength.I am personally due to transfer some of my humble UK funds over here to euros for living expenses.Do I wait till the BOE make a decision? Does anyone know what date this month will they make an announcement as my need for some euros is now getting a little......well...... urgent

[Jimgym]

They are due to meet today I believe and it is looking likely that rates will rise.

[MacManiac]

According to the financial sections of most of the papers I have read recently, the rate rise will not impact on the exchange rate as it has been factored in already by dealers. If the rate rise does not happen for any reason, it will - according to the experts - have a negative effect on that exchange rate.

[El tel]

I notice currency rates have moved up this morning , now 1.1212 with Currency fair . It seems we are due an interest rate rise today and theoretically it should improve the strength of the pound but as already mentioned it may already be built in. I am waiting for the decision today before I transfer funds to Cyprus as I do not see much movement the other way.

Terry

[El tel]

Interest rates up .25% , pound slightly up against the euro.

Terry

[trevnhil]

It always puzzles me a bit about the pound or the Euro 'being up'
If the Pound is now up, I would have though that meant the Euro was down.
But the exchange rate was 1.12 this morning and is now 1.13 ???

[Jimgward]

Until Brexit, I cant see much movement in interest rates for sterling. Then, who knows what will happen?

[ApusApus]

It always puzzles me a bit about the pound or the Euro 'being up'
If the Pound is now up, I would have though that meant the Euro was down.
But the exchange rate was 1.12 this morning and is now 1.13 ???

You have to look at it from each respective currency! 1.00 GB£ got you 1.12 euros earlier but then moved to 1.13 which means that you get more euros for each £. But from the euros point of view 1.00 GB£ was worth 0.893 euros earlier, however later it was worth 0.885 euros so it means you are getting less euros for each £ you exchange. One man's up is another man's down so to speak!


Shane

[ApusApus]

Until Brexit, I cant see much movement in interest rates for sterling. Then, who knows what will happen?

Quite ……………………… is that an acceptance that nobody knows what will happen after Brexit Jim, even HiC?


Shane

[tonee]

Can you remember when the interest rate averaged around 10% and had a mortgage.Todays rate I could have only dreamt about.Now the shoe,s on the other foot i.e investment,that 10% aint going to happen in my life time.

[Jimgward]

It always puzzles me a bit about the pound or the Euro 'being up'
If the Pound is now up, I would have though that meant the Euro was down.
But the exchange rate was 1.12 this morning and is now 1.13 ???

You have to look at it from each respective currency! 1.00 GB£ got you 1.12 euros earlier but then moved to 1.13 which means that you get more euros for each £. But from the euros point of view 1.00 GB£ was worth 0.893 euros earlier, however later it was worth 0.885 euros so it means you are getting less euros for each £ you exchange. One man's up is another man's down so to speak!


Shane

You’re maths is wrong. One figure is the inverse of the other

[Jimgward]

Until Brexit, I cant see much movement in interest rates for sterling. Then, who knows what will happen?

Quite ……………………… is that an acceptance that nobody knows what will happen after Brexit Jim, even HiC?


Shane

No - an acceptance that larger currency fluctuations are unlikely to happen until the deal is signed.

I think even the solid brexiteers - like Rees-Mogg, have acknowledged we will be much worse off - in his case, he states 50 years to see any financial benefits. So our children and grandchildren will live in greater austerity. Not my humble assertion, but the financial guru steering the ship from the engine room

[kingfisher]

Jimgward- “Your maths is wrong. One figure is the inverse of the other”,
Not so. The inverse of a figure is the reciprocal, or 1 divided by that figure.
When you are looking at a currency pair, eg euro/pound, the relative up and down movements between them are simply a balancing mechanism.

[ApusApus]

Jimgward- “Your maths is wrong. One figure is the inverse of the other”,
Not so. The inverse of a figure is the reciprocal, or 1 divided by that figure.
When you are looking at a currency pair, eg euro/pound, the relative up and down movements between them are simply a balancing mechanism.

Totally agree, maybe Jim should go back to school!


Shane

[ApusApus]

I think even the solid brexiteers - like Rees-Mogg, have acknowledged we will be much worse off - in his case, he states 50 years to see any financial benefits. So our children and grandchildren will live in greater austerity. Not my humble assertion, but the financial guru steering the ship from the engine room

And you know this for sure ...................... are you using a better crystal ball than the rest of us or maybe HiC's one?


Shane

[ApusApus]

When you have a weak, vacillating leader (May) hanging on by her fingertips and a cabinet split in two, is it any wonder that the government itself doesn't know what it's bargaining position is, or should be? In such event, how can the UK ever hope to negotiate a viable, positive outcome?

If there is a very real risk of a Hard Brexit (ie. not just being talked about/threatened), then you may take it as given that the pound will plummet, as the road ahead for the UK will be very rocky indeed. Read a news story last night that said many councils are making contingency plans for civil unrest; in that scenario, it's fair to assume that the pound will not fare well.

As you always quote "IF" ………………… what happens "IF NOT", opps I forgot that's not in your vocabulary is it?


Shane

[ApusApus]

Quite ……………………… is that an acceptance that nobody knows what will happen after Brexit Jim, even HiC? Shane

When you have a weak, vacillating leader (May) hanging on by her fingertips and a cabinet split in two, is it any wonder that the government itself doesn't know what it's bargaining position is, or should be? In such event, how can the UK ever hope to negotiate a viable, positive outcome?

If there is a very real risk of a Hard Brexit (ie. not just being talked about/threatened), then you may take it as given that the pound will plummet, as the road ahead for the UK will be very rocky indeed. Read a news story last night that said many councils are making contingency plans for civil unrest; in that scenario, it's fair to assume that the pound will not fare well.

And while on the subject, you haven't answered the question "how do know what will happen after "Brexit?""


Shane

[Jimgward]

I think even the solid brexiteers - like Rees-Mogg, have acknowledged we will be much worse off - in his case, he states 50 years to see any financial benefits. So our children and grandchildren will live in greater austerity. Not my humble assertion, but the financial guru steering the ship from the engine room

And you know this for sure ...................... are you using a better crystal ball than the rest of us or maybe HiC's one?


Shane

You dont read posts, do you? I said not me, but Rees-Mogg....

[Jimgward]

Jimgward- “Your maths is wrong. One figure is the inverse of the other”,
Not so. The inverse of a figure is the reciprocal, or 1 divided by that figure.
When you are looking at a currency pair, eg euro/pound, the relative up and down movements between them are simply a balancing mechanism.

If £1 = 1.12 euros

That is the same as

1 euro = £1/1.12\
1 euro = £0.8929

They are the one and same and Shane was wrong to think one was different

[ApusApus]

I do read posts but you quote "I think even the solid brexiteers - like Rees-Mogg," and then you quote "So our children and grandchildren will live in greater austerity" and you know this how?

Shane