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Wednesday, August 27, 2008 |
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Luisa Copeland Ph. +33 553 62 44 79 E-mail Us!
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Go Back Strong Euro, weaker pound, act now. Sterling dropped on December 6th 2007 to 1.38€, its lowest point for four and a half years. The medium term outlook continues to be negative for Sterling and a further rate cut may be expected in the spring. All of you who are in the process of buying a property in France would be well advised to order your currency from a currency dealer soon. Prices in France are most interesting now after a quiet year, but any gain you may make on the house price could be wiped out by a fall in the pound. However the good news is that UK interest rates are now down to 5.5% Base rate, making borrowing that much easier and lessening the load for current borrowers.Speculators have turned their attentions towards the euro, but the hope that the European Central Bank will raise rates is now slightly diminished. The euro has already strengthened across the board against most major currencies, in particular against USD and GBP. Following the Halifax report that UK house prices actually fell by 1.1% across the board will have spread the jitters nationwide, and buyers are expected to be more cautious at least in the short term.
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