The pound is currently performing steadily against the euro before the meeting to discuss the Monetary Policy.
After the Brexit result announced last year, the pound has suffered and seen increasing uncertainty, and has now been recently affected too by the general election hung parliament.
But the British pound value has seen an increase over the last few days, and although the pound to euro exchange rate remains highly vulnerable, finally settling on a U.K. government could have helped stabilise the British economy.
The Monetary Policy Committee talks today, which will most-likely influence the current position of the pound, will discuss the topics of England’s supply of money, inflation rates and price stability to find ways to remain general trust in the currency.
The sterling is currently buying €1.136 after dipping to weekly lows of €1.128 on Monday, and is said it could even reclaim its monthly high of €1.173.
If there are doubts raised in lieu of these talks, the pound could slide as low as after the hung parliament result in the recent U.K. general election.
Brexit is also another contributing factor to the stability of the pound. People and businesses doubting the future relationship between the U.K. is highly affecting the stability of the British economy. Although Brexit Minister, David Davies has recently said: “You have people worrying here in Britain that they can’t stay here, you have Brits living in Spain worrying they will not be able to stay there. The worries are unnecessary and they shouldn’t have them but we want to make sure they are dealt with as soon as possible.”
Blevins Franks, the tax and wealth management experts for U.K. nationals abroad, have given the following information and tips regarding Brexit:
- Double taxation treaties are bilateral agreements between specific countries (e.g. the UK and France, Spain, Portugal, Cyprus and Malta). They are independent of the EU and typically govern most of the taxation aspects affecting UK nationals living in the EU.
- For many expatriates considering taking action on estate planning, investments, pensions or general tax planning, it may well be worth acting now, under rules that are known, rather than waiting to see if new EU rules apply after Brexit.
- The 25% charge the UK Chancellor announced in the spring budget to apply to transferring UK based pension funds overseas currently does not affect transfers within the EU, but may be a sign of steps the UK government could take post-Brexit that would have implications for UK nationals living in EU/EEA countries.If you have concerns over finance as a U.K. national living abroad, you can find out more information at: www.blevinsfranks.com