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FT said:The sharp costs of Brexit will be felt soon enough
Britons will get poorer through prices rising more than wages, writes Rupert Pennant-Rea
https://www.ft.com/content/fdd5a8ca-691c-11e6-a0b1-d87a9fea034f
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FT said:The sharp costs of Brexit will be felt soon enough
Britons will get poorer through prices rising more than wages, writes Rupert Pennant-Rea
The £ fluctuates anyway to an extent. When we first went to Australia in 2010 one pound bought about 1.50 Australian dollars. In subsequent years the rate gradually improved until at one point last year we were getting over 2 Australian dollars for a pound. The rate is now on its way back towards 1.50 Australian dollars.
It's the uncertainty that does it, as with stock markets although these tend to react in the same direction globally these days with crises in individual countries having a relatively small influence on that country's markets.
Brexit has provided the uncertainty this time and as a result sterling is under huge pressure. In a few years it might all be seen to have been unnecessary but until (if) that time comes everyone plays safe and assumes the worst. Reducing our interest rate wasn't helpful to the pound either.
I mentioned Australia in a recent post. One of the drivers of a stronger GBP against the AUD last year was a reduction in the Australian interest rate that weakened the AUD. Brexit has weakened the GBP against the AUD is recent weeks, as the GBP has weakened against most if not all other currencies, but I haven't looked to see how resilient the AUD has been against other major currencies.
On my walk today I popped into the BRS terminal and noted this morning that the exchange rate there was 96 euros to the GBP. There were actually people at the counter buying at that rate.
That's obviously why there was a queue at the counter. Would have been out of the door if the word had got around.At 96 euros per pound i'll buy some. In fact I'll draw my savings and get it cashed in.![]()
??I'm not paying much attention to all this election stuff. Am too busy stocking up on tinned food and building my 'inner core or refuge ' under the dining table.
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