Convert money before or after interest rate rise

swerdnji

I am wanting to convert UK £'s to US $'s for a trip on the 15th Nov.

Am I best to wait until after the decision on the interest rate this coming week or get the money now?

I know you are not mind readers but does anyone know historically if the interest rate rises do we get a better exchange rate?

richardw

How many US$ do you want to buy?

swerdnji

About $750. I will also have my credit card but in the little town of Redneckville (not the real name!!) where I am staying cash is king!

richardw

For $750 I wouldn't worry about it.

benjus

swerdnji wrote: »

About $750. I will also have my credit card but in the little town of Redneckville (not the real name!!) where I am staying cash is king!

If you have a fee-free card like Halifax Clarity, try and find out if there are any ATMs in town that don't charge a fee - then you can just withdraw cash when you get there. However, most ATMs in the US do charge a fee.

As for the interest rate rise, the markets are expecting it. So Sterling might rise a bit if it's confirmed, but it won't be a massive shift. On the other hand, if they decide not raise interest rates it will be a surprise for the markets so Sterling will probably drop by a larger amount.