2006-10-07 00:33:09 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
No.
An increase in our bank rate will strengthen the pound against the Euro because it makes it more profitable for banks (foreign or otherwise) to invest in the pound and gain more profit.
2006-10-07 00:36:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Typically the Bank of England tend to move rates in the months when the inflation figures are out - the next time is November and there is a consensus that we will see another 0.25% rise then. Some commentators believe that will be all for the foreseeable future but some gloom merchants are saying that rates will peak at 6% over the next 18 months. If you are thinking of committing to a mortgage or other large debt linked to the base rate I would suggest that you do your sums based on rates being 1% higher than they are now to check how you would be affected.
I think that sterling will strengthen slightly against the Euro but that is just a gut feeling. We live in a volatile world where there are many more external factors than you would find in an economics text book!
2006-10-08 05:43:06 · answer #2 · answered by stukemann 1 · 0⤊ 0⤋
The pound will strengthen against the euro in November. This is not down to any rise or fall in interest rates but due to the fact that the banks and other financial institutes tend to rip off the poor English tourist and hike the exchange rate in the summer
2006-10-07 07:43:08 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No - the fact that the Euro area did will weaken it
2006-10-07 07:41:24 · answer #4 · answered by LongJohns 7 · 0⤊ 0⤋
no
2006-10-10 13:20:48 · answer #5 · answered by JD417 3 · 0⤊ 0⤋