In our previous blog, we touched upon the UK being a safe haven in an unstable geopolitical climate, with a fading sense of assurance amongst the world’s democracies. But the economic case for a move to the UK remains compelling too with the recent strengthening of the pound complementing the news that the UK is strongly rumoured to be destined for a soft brexit.
Ian McCafferty, a member of the Bank of England’s Monetary policy committee, recently stated that wage growth may be stronger than ever, ultimately adding to the inflation pressure within the BoE’s target. The UK shouldn’t fear rising inflation rates due to the pound sustaining a more secure position among the world’s currencies off the back of interest rates possibly set to rise twice this year.
McCafferty’s bullish tone was offset by Bank of England Governor Mark Carney who commented last Wednesday evening that economic data in the next few weeks will be key to whether or not the Bank of England will make their move and raise interest rates on May 10th. Before these comments along with the low inflation figures earlier that day, it had looked certain that we would see an interest rate hike, which is why the Pound had managed to gain strength over the past few weeks. Not withstanding the weakening of recent days, many analysts refuse to buy Carney’s view and expect the Bank to raise rates in May and for Sterling to perform well over the medium to long-term.
No currency exists in isolation and the travails of other currencies underline Sterling’s attractiveness. The Russian Ruble is currently experiencing turbulent times, amidst the recent news of their stock markets falling by 12 percent since the last round of sanctions was announced on April 6th. The Euro too has its issues, with Italy’s future heading in an unpromising direction.
By contrast, the UK is responding well in the aftermath of Brexit with Sterling continuing to remain attractive to investors. The pound recently hit its highest level since Britain’s vote to leave the European Union in June 2016.
In light of this, it’s not surprising that the UK remains a popular choice with those seeking to re-domicile themselves and their loved ones. UK Tier 1 Investor Visas continue to look an excellent choice.