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Rate cut relief for euro-tourism?

January 9, 2009
Picture taken from Evening Standard

Picture taken from Evening Standard

So some potentially good news for travel, in the form of the Bank of England’s rate cut yesterday, to 1.5%

The pound made a surprise comeback, managing to get off its knees as the battle rages with euro – the biggest rise in 3 weeks.

Having just come back from Paris, I’m still even now reeling from how expensive things were.

Already their “pouvoir d’achat” – or buying power – is being further diminished as prices across the board go up.

Returning to favourite restaurants, it was apparent that dishes had gone up by a few euros. Couple this with the pound/parity and things were looking bad for euro-tourism.

This excellent article from the Evening Standard would have also dented prospects for a revival in European bookings. That was a black day indeed.

But hopefully the pound will enter round two, and gain against the euro – which is itself starting to lose strength against other currencies.

At time of writing, one pound was worth €1.113

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