By Ashley Finill
This week has seen some stability for the Pound as it’s had a steady rise on both the Euro and US Dollar. Yesterday, the Bank of England opted to cut interest rates in the UK by 25 basis points (0.25%). This had been expected and as Sterling didn’t weaken against the Euro, this decision was seemingly already priced in. However, comments from the BoE governor Andrew bailey in the press conference after the cut announcement gave Sterling some support. Mr Bailey said that they will take a more cautious and gradual approach for further rate cuts. There had been a feeling that a cut yesterday could have been by 50 basis points and not the 25 announced yesterday and with the governor also confirming a more cautious approach and pretty much rules out a cut in June, this is what is likely to have given Sterling a boost in yesterday’s afternoon trading. After an interest rate cut this is generally not the norm as historically Sterling has reacted negatively when a cut has been announced. As of this morning Sterling has fallen slightly against the Euro by around half a cent and are likely to see further movement throughout today’s trading.
Trade deals struck this week
The UK government have been busy this week as we have seen two key trade deals struck with major world economies. On Tuesday, the Government announced a trade deal with India had been made, the Free Trade Agreement will bring cheaper clothes and shoes for British shoppers, a huge Indian market for British whisky producers and luxury car manufacturers, and billions of pounds worth of extra trade are among the benefits of the agreement. Keir Starmer has said this Trade deal will add £4.8 billion to the UK economy and £2.2 billion in wages every year. Another trade deal was made yesterday also between the UK and the US, bringing down tariffs between the two nations that Donald Trump introduced back in March. The trade deal is being described as a landmark economic deal with the United States as it could save thousands of jobs within the car and steel industries. The trade deal has seen a reduction on car exports tariffs from the 27.5% recently imposed to 10%, saving hundreds of millions a year for Jaguar Land Rover alone. The UK steel industry, which was on the brink of collapse just weeks ago, has had the 25% tariff removed altogether.
A Place in the Sun Live in London starts today
Finally, today is the start of A Place in the Sun Live at London Excel, if you haven’t already then you can still claim you tickets for this weekend’s event. It is a great starting point if you have just started your search with a mountain of information when buying a property overseas, we have lots of agents flying in along with legal representatives, presenters of the show Laura, Amanda and Jasmine will be interviewed at the Hub and of course we A Place in the Sun Currency will be there too, so come on down if you have the weekend free and get your overseas search in full swing!