Press

Target-Hitting Inflation Rate Could Affect UK Exports

By Ricky Bean March 18th, 2014

cargo ship exporting southampton

Press release

Figures released this week show that the UK inflation rate dropped to 2% in December 2013, hitting the target set by the Bank of England’s forward guidance policy. The decrease was largely due to a slower rate of inflation in prices for food and non-alcoholic drinks.

“This is promising news for the British economy as a whole,” says Carl Hasty, Director of international money transfer specialist Smart Currency Business, “Certainly for the Bank of England, which has been keeping its Bank Rate pegged at 0.5% until unemployment falls to 7% – something else the economy seems to be on its way to achieving.

“The lower inflation rate should theoretically weaken the pound, improving UK export competitiveness. However, this appears not to have had a major impact on sterling due to prevailing optimism over the current UK economic outlook.

“A stronger UK economy usually means a stronger sterling, but this could undermine our export competitiveness. But this does not mean that businesses are unable to succeed in the export market, though. Exporting opens up whole new markets for businesses to explore, allowing them more options for growth.”

 

If you would like more information on how to reduce the cost of importing or exporting, contact us on
020 7898 0500 and speak to one of our currency experts.

 

Click the links below to read coverage of this article in the press:

International Trade

International Trade Expo

Business Matters Magazine

Economic Voice

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