Yesterday's cut in interest rates could be good news for those looking to make a profit on currency investments in sterling, one expert has claimed.
Marc Cogliatti, spokesperson for currency investment specials HiFX, explained that while an interest rate cut would usually be bad news for a currency, the current economic situation might mean the opposite is true.
He said: "In the exceptional circumstances we find ourselves in at present, this rule may not necessarily apply.
"Instead, by cutting interest rates it may be seen as a positive for sterling, given that it should help minimise any downturn in the UK economy."
He added that as sterling is currently so low against the euro, if the pound does rally on international markets then investments in it could show a profit.
Yesterday, Steve Thornber of Threadneedle claimed that anyone with investments in oil should see prices continue to rise in the coming months.
Rate cut could be good news for sterling investments, expert says
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Rate cut could be good news for sterling investments, expert says
Fri, 11 Apr 2008
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