Will the Pound rise against the Euro?

2023 was a difficult year for many countries and their respective economies around the world as inflation was high at the start of the year. Inflation has rocketed in many nations after the pandemic with the UK rising to its highest level in decades. Many people feared it would continue to rise but in recent months inflation has started to come under more control and closer to the target of 2%.

With the Bank of England having increased interest rates 14 times in a row the central bank have now paused monetary policy at least for the short term. With UK interest rates sitting at 5.25% inflation has fallen and 2024 is predicted to be a year of growth for the UK. Inflation is still at 3.9% but it is much closer to where it needs to be so don’t be surprised if we see an interest rate cut coming in the next few months.

The UK housing market has remained relatively robust so far and although properties are not being sold and marketed as much as previous years the average house price in the UK remains high. Indeed, in order for some banks to sell mortgages they have started to reduce their interest rates recently to attract more borrowing.

UK growth is something that the Chancellor expects to see performing well during 2024 and this is especially important as predictions are that we’ll see a possible general election towards the end of this year.

There are many reasons to be fairly buoyant about Sterling Euro rates this year so if you have a currency transfer to make and would like more information about how to save money compared to using your own bank then contact me directly.

I have worked for one of the UK’s leading currency brokers for 21 years so please email me directly and I look forward to hearing from you.

Tom Holian tom.holian@lumonpay.com