In the run up to the referendum for the UK to remain a member of the European Union it was expected by many analysts that the pound sterling would weaken due to the uncertainty of the outcome.
The pound is very vunerable to comments and did lose some ground recently particularly against the Euro, as the leave campaign gathers momentum the UK currency is expected to weaken further. The Bank of England has warned that a vote to leave the European Union risks a new credit crunch, and that it could cause a run on the Pound and higher interest rates for mortgages.
The Bank of England has deliberately not made any direct comments one way or the other regarding the referendum, the statement from the Financial Policy committee will certainly assist Pro Europeans as they make a case for us to remain within the EU.
Author: Allen Walkey
Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.