Interest and Exchange rate outlook
A number of you financially savvy contractors may be interested in what the “Centre for Economics and Business Research” (cebr) had to say about the Interest and exchange rate outlook.
The forecasts show base rates of 0.5% to 2011 at least, remaining below 2% to 2014. They show an additional £75 billion of quantitative easing (purchasing a wider range of assets than hitherto). They indicate a sharp fall in the long bond yield to 2.8% by 2011 and 2.5% by 2013 and a weaker pound, falling to $1.40 and possibly below €1.00 (depending on whether the markets get worried about the long term sustainability of the euro).
Many financial commentators are now forecasting base rates to stay on hold into the first quarter of next year with possible moderate increase to under 2% till end of 2010.
The Financial Times also reported comments from the Bank Of England Governor Mervyn King in an article dated September 16th 2009 warning households and businesses of a ‘slow and protracted’ recovery from the economic down turn. Many financial commentators on the back of these latest comments are now continuing their forecasting of possible low base rates over the next two years.
Those contractors looking to work overseas should perhaps avoid getting paid in pound sterling, especially as it's forecast to continue weakening. I suppose the perfect scenario is to get a contract that pays in Euros.
Atleast it's good news for those who have tracker mortgages.
The forecasts show base rates of 0.5% to 2011 at least, remaining below 2% to 2014. They show an additional £75 billion of quantitative easing (purchasing a wider range of assets than hitherto). They indicate a sharp fall in the long bond yield to 2.8% by 2011 and 2.5% by 2013 and a weaker pound, falling to $1.40 and possibly below €1.00 (depending on whether the markets get worried about the long term sustainability of the euro).
Many financial commentators are now forecasting base rates to stay on hold into the first quarter of next year with possible moderate increase to under 2% till end of 2010.
The Financial Times also reported comments from the Bank Of England Governor Mervyn King in an article dated September 16th 2009 warning households and businesses of a ‘slow and protracted’ recovery from the economic down turn. Many financial commentators on the back of these latest comments are now continuing their forecasting of possible low base rates over the next two years.
Those contractors looking to work overseas should perhaps avoid getting paid in pound sterling, especially as it's forecast to continue weakening. I suppose the perfect scenario is to get a contract that pays in Euros.
Atleast it's good news for those who have tracker mortgages.
