Find out what we think of the chances of a UK interest rate hike tomorrow and what could happen to the pounds in your back pocket as a result
Last weeks positive UK GDP figures have bolstered the case for an increase in interest rates by a likely 0.25%. According to the futures markets, the odds of such a rate increase are now more than 80% in favour of a hike. To this extent if the BoE increases by 0.25% tomorrow a rise in Sterling should be mostly "priced in" and we should see a modest appreciation in the value of the pound. On the flipside, because expectations of a rate hike are so high, any decision by the bank to do nothing would be a big shock to financial markets. If interest rates are kept on hold this could trigger a sell-off of the pound immediately after the decision.
Get in touch with us and let us know what you think! Are you exchanging your currency today before the event or waiting to see what happens?
