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Will An Interest Rate Drop Effect The Pound Value By Much?

Hi,

With talk of a likely interest rate drop on Thursday would it be better to get Euros for my summer holiday before it changes? After initially thinking the exchange rate would recover a little it seems to be heading in the wrong direction.

Maybe the rate won't change this month??

Thanks
MJaye

Comments

  • NiftyDigits
    NiftyDigits Posts: 10,459 Forumite
    Revolut....
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    It'll already be priced into the exchange rate.
  • eDicky
    eDicky Posts: 6,835 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    Consulting the 'Coin-toss' Oracle will give as reliable an indication as anyone's opinion about future exchange rate movements.
    Evolution, not revolution
  • Voyager2002
    Voyager2002 Posts: 16,349 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    The word is "affect".

    And the answer to the question is yes, but all sorts of other things will have a greater impact on the exchange rate. Not to mention the fact that none of know if the interest rate will actually be reduced: they might confound expectations and increase it! And of course the interest rate in Euro-land could also change...
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