Bank of England Minutes reveal 3-way split

25/10/10 Last week’s Bank of England Minutes revealed a 3-way split in the monetary policy committee’s views on interest rates and quantitative easing.

While 7 of the 9 members voted for no change, one (Andrew Sentance) voted again for an interest rate rise, while one (Adam Posen) voted for a £50bn extension to QE.

Any extensions to QE are likely to hurt sterling and it now seems plausible that this will happen in the coming months.

On top of September’s Public Borrowing figures, which showed record levels of public debt, and September’s retail sales numbers which showed a decline in the high street, the Pound has continued to struggle.

GDP figures tomorrow

Tomorrow sees the UK’s GDP estimate for economic growth from July to September released at 9.30am. This is a crucial figure for anybody transferring money abroad, since lower-than-expected growth could hurt the Pound further. Any signs that we could be heading for a ‘double-dip’ recession would be likely to send sterling lower still against all major currencies.

Friday morning’s mortgage approvals may also be an important barometer of the housing market, which needs a boost after recent falls in house prices.

Whatever your own requirements for currency transfers, don’t leave your rate to chance; call your currency broker and they will monitor the market for you to ensure you have the chance to buy at the best available exchange rates.

Data releases this week

Monday 25^th
1000 – Eurozone industrial orders
1500 – US home sales

Tuesday 26^th
0930 – UK GDP
1500 – US consumer confidence

Wednesday 27^th
0230 – Australian CPI inflation
1500 – US new home sales
2100 – New Zealand interest rate decision

Thursday 28^th
0855 – German unemployment rate
1000 – Eurozone economic confidence
1330 – US jobless claims

Friday 29^th
0700 – German retail sales
0930 – UK mortgage approvals
1000 – Eurozone unemployment rate
1330 – Canadian GDP

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