Corporate foreign exchange news

Foreign exchange news: Sterling will hurt importers in 2010

Monday, 23 November 2009 09:56:24 GMT

The weakness of the pound may hurt UK importers throughout next year, creating anaemic demand for goods for an extended period, FT Adviser has warned.
Writing for the site, Georgina Taylor, equity strategist at Legal and General Investment Management, said import prices and commodity prices will be important factors in influencing overall consumer demand.
"In the UK, the fall in sterling is not helpful for imported goods prices – potentially dragging down margins through higher input costs," she explained.
Such conditions may make obtaining the best deal on foreign exchange rates a top priority for importers over the coming year.
Looking ahead to 2010, Ms Taylor forecast inflation pressures will remain subdued in the UK and other developed countries, making it easier for central banks to keep interest rates low.
The Bank of England's Monetary Policy Committee's next monthly policy statement will come on December 10th. Earlier this month, all members voted in favour of maintaining interest rates at 0.5 per cent.ADNFCR-2522-ID-19472513-ADNFCR
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