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New rate rise statement set to boost tourists

September 29, 2017

New rate rise statement set to boost tourists

Britons planning a getaway in the next few months to enjoy some sun instead of the cold, dark winter at home are set to get more holiday money for their pounds.

The pound has been boosted by recent hints from the Bank of England that a rise in interest rates is on the way, and this prospect has been reaffirmed by governor of the Bank Mark Carney. 

Speaking to the BBC, he said: "If the economy continues on the track that it's been on, and all indications are that it is, in the relatively near term we can expect that interest rates will increase."

While this is not confirmation of a rate rise - that can only come when the Monetary Policy Committee gets together at its monthly meeting and votes for one - Mr Carney's comments will raise expectations of a rise soon.

Anyone who is planning an overseas trip can also save money by getting a good-value travel insurance policy.  

Since the EU referendum the value of sterling has plunged against a number of other currencies, a situation compounded by the cut in the base rate from 0.5 per cent to 0.25 per cent. All that has meant Britons changing pounds into foreign currencies ahead of their holidays have received a lower return, prompting some to opt for a 'staycation' and take a holiday in the UK instead. 

The prospect of a rise may change that viewpoint, and get those who might have put overseas travel plans on hold reaching for the brochures and starting plans for a trip to sunny climes. 

Among those sure to benefit will be the thousands of Britons visiting Australia to see the England cricket team in Australia, with a further trip to New Zealand to follow. 

Others may plan to embrace the winter by heading for a continental ski resort, knowing they will have more euros or Swiss francs to spend there.

Those who are enjoying winter sports should make sure they get a travel policy that covers activities such as skiing and snowboarding, as not every policy automatically rovides for these.

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.

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