Fullerton, like nearly everyone else, expected the base rate of 4.5 per cent to be slashed by either 50 or 100 basis points. “I think they’ve gone for 150 basis points to get the banks to pass that cut on,” he says. Fullerton expects sterling to weaken in the short-term, and then come back. “I think we’ll start to see, as the cut filters into bank lending and then into the economy, sterling strengthening,” he says. “I think this interest rate cut of 150 basis points to three per cent might actually be the catalyst that’s needed to kick-start the economy.” For those of you planning to indulge in a spot of currency trading, Fullerton has this advice: “If you’re thinking of selling, I’d probably hold on a bit, let the interest rate decision filter through to the market and take a view in the middle of next week. “If you’re thinking of buying, get it done now before the market has a chance to digest the decision.”Related articlesInterest reates cut by 1.5 per centInterest rates are slashed and now the banks must followPicture source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.