Weaker pound 'will boost economy'

People planning an international payment may not think so, but it has been claimed that falls in the value of the pound will help the UK economy in the long-term.

Spencer Dale, the Bank of England's chief economist, has argued that the decision to print more money to pump more liquidity into the market is having a positive impact on the economy and will continue to stimulate growth in lending and business development over the coming months.

Although the use of so-called quantitative easing is not proving so good for those planning an international money transfer, by weakening the pound against other currencies, Mr Dale insisted it would pay off in the long-term by making British assets more attractive to overseas investors.

Sterling has suffered a torrid time on the foreign exchange markets in recent months, which could have resulted in many people putting off making an international payment until the value stabilises.

There is a growing body of evidence to suggest that the UK is heading out of recession and while many experts are cautioning against hope of an imminent recovery, the end of the recession could encourage more people to make international payments to foreign countries as the bank ends quantitative easing and the pound begins to stabilise.

By Paul Jarvis