UK Interest Rate Setter Confirms No Imminent Rate Rise
As a Forex trader you may have noticed that over the last few days the value of GBP has been dropping slightly against more other currencies, and this is due to a recent statement announced by one of the men tasked with setting the Interest Rate in the UK.
Martine Weale has just announced that he is certainly in no rush to increase interest rates in the very near future as the UK inflation rates remain very low, almost at zero, and as wage growth is not a problem in the UK with wage rises being at a minimum there is going to be no shock announcement in regards to increasing interest rates at this moment in time.
That statement does somehow contradict one he made earlier in the year as he was on record for saying that it would be in the Autumn of this year when a rate rise was going to possible come into force.
However, with the UK now heading into winter in earnest and having seen no rate rise, as a Forex trader you may be wondering if his words can be taken at face value or as the set in stone truth.
One thing he did say is that he has been given much more breathing room and time to delay an interest rate rise due to the current financial climate in the UK which is one of the main reasons why GB has been showing slight decreases in its value over the last few days.
But, you may be wondering just what the long term effect of those low interest rates will have not only on the UK as a whole but much more importantly on the value of GBP, for as a trader you will want to be able to predict the way any currency is likely to move over any given time period.
Well it is still very safe to say that out of all European countries, the UK is performing exceptionally well at the moment, and with a strong economy when compared with other European countries GBP should not be seeing any major decreases in its value over the foreseeable future.
That does of course mean that you will have to look elsewhere for some of the more volatile currencies to place your Forex trades on, and there are certainly plenty of them about.
