Exchange Rate Update
As of 12:00 on 9 February 2026, the real-time market exchange rate of GBP to RMB stood at 1:9.4349, down 0.094% from the previous trading day. The movement was mainly driven by divergence in monetary policy between China and the UK. Expectations for a UK rate cut are strengthening, with markets anticipating easing possibly starting in May, while China maintains a relatively steady policy stance.
Key Events This Week
Bank of England holds February interest rate unchanged
UK diplomatic tensions continue
Flood alerts issued across England and Wales
UK technology stocks attract attention
UK average house price reaches record level
01 Bank of England Holds Rates
On 5 February, the Bank of England kept the base rate unchanged at 3.75% during its first Monetary Policy Committee (MPC) meeting of the year.
According to official minutes, the decision passed narrowly, with 5 members voting to hold and 4 voting for a cut to 3.5%, indicating internal disagreement over the future policy path.
The Bank also updated its inflation and economic outlook. Inflation rose back to about 3.4% in December 2025 after several months of decline and remains above the 2% target, leading policymakers to judge that it is premature to loosen policy further.
Following the announcement, the pound weakened briefly against major currencies as markets priced in stronger easing expectations. Investors are increasingly watching the possibility of rate cuts as early as March or April, with forecasts suggesting one to two reductions in the coming months.
02 Diplomatic Tensions
On 3 February, the UK expelled a Russian diplomat in response to Russia’s earlier expulsion of British diplomatic personnel.
The Foreign Office described Russia’s action as “groundless” and stated the UK would not tolerate accusations against its diplomats. While disagreements remain, the UK emphasized resolving disputes through diplomatic channels while reserving the right to further measures if necessary.
03 Flood Alerts
On 8 February, multiple regions across England and Wales — particularly southwestern coastal and river-adjacent areas — were placed under flood alerts and yellow rainfall warnings.
Data from the Environment Agency and the Met Office indicated Atlantic low-pressure systems brought 10–30 mm of rainfall within 24 hours. Around 220 alert lines were issued, with roughly 100 areas classified as “likely to flood”.
Rising river levels led to road closures and localized power disruptions. Authorities advised residents to prepare protective measures and avoid unnecessary travel.
04 Technology Stocks
On 4 February, analysts noted UK technology companies drew investor attention despite broader market pressure amid slowing global growth.
Firms in innovation and software services, supported by growth potential and customer demand, have become a focus for capital inflows. However, investors were cautioned to monitor macroeconomic conditions, inflation trends and interest-rate risks.
05 House Prices Reach Record
On 7 February, mortgage-lender data showed the UK average residential price surpassed £300,000, reaching approximately £300,077 in January — a historic record.
Prices rebounded 0.7% month-on-month after a 0.5% dip in December, with annual growth around 1%. Despite moderate growth compared with previous boom periods, the data suggests market resilience.
Analysts believe the milestone reflects recovering buyer demand as borrowing costs stabilize, along with continued competition for quality housing supply, particularly among first-time buyers and movers.
Buy a property in the UK with a team of professionals who know the UK property market best｜ Lansha Group
Founded in 2014 and headquartered in Paddington, London, Lansha Group has become one of the top 100 seafarers in the industry in the past 10 years, providing one-stop services for international property. We have many years of professional experience in dealing with all aspects of the property market, from choosing a property to opening a home, loans, solicitors, tenancy management and second-hand property sales. We provide 24-hour real-time service to our global clients, assisting them in dealing with the cumbersome formalities of property purchase and home inspection, so that they can move into their homes or invest in them with peace of mind. If you are looking to invest in the UK, Lansha Group has a professional investment team to assist you in selecting the best properties, analysing the housing information and regional development, and making a comprehensive assessment to choose the ideal home. Visit Lansha Group's website now to view our selection of properties and choose your dream home!
If you have any questions about buying a property in the UK, please feel free to contact us directly.
