Euro vs Pound: exchange rate, interest rates and strength
As of October 23, 2026, EUR/GBP is 0.8373: 1 euro = 0.8373 pounds (1 pound = 1.1943 euros). The euro is down 3.7% against the pound over the past year and down 1.1% over five years. The Bank of England policy rate is 3.75% against 2.50% at the European Central Bank; after inflation the real rates are 0.66% in the United Kingdom and -0.75% in the euro area.
Exchange rates as of October 23, 2026; policy rates, inflation and strength as of September 2026 or later. Refreshed weekly from the BIS and FRED.
What is the pound to euro exchange rate?
Pound vs euro and Euro vs pound are the same question: this page quotes the pair the way markets do (EUR/GBP).
| When | pounds per euro | Date | Change in euro's value |
|---|---|---|---|
| Now | 0.8373 | Oct 23, 2026 | |
| 1 year ago | 0.8696 | Oct 17, 2025 | -3.7% |
| 3 years ago | 0.8716 | Oct 20, 2023 | -3.9% |
| 5 years ago | 0.8465 | Oct 22, 2021 | -1.1% |
| 10 years ago | 0.8899 | Oct 21, 2016 | -5.9% |
| Measure | High | Low | Volatility |
|---|---|---|---|
| Past year | 0.8830 Nov 14, 2025 | 0.8373 Oct 23, 2026 | 3.4% a year |
| Past five years | 0.8966 Feb 3, 2023 | 0.8258 Mar 4, 2022 | 5.1% a year |
"Volatility" is the annualised standard deviation of weekly moves: 3.4% means the rate typically swings about that much up or down over a year. Exchange rates are the Federal Reserve's daily noon-buying-rate series (the H.10 release) from FRED; the EUR/GBP cross is calculated from each currency's dollar rate.
Who pays more to borrow: the European Central Bank or the Bank of England?
A central bank's policy rate sets the price of short-term money in its currency; the 10-year bond yield is what governments pay to borrow for a decade.
- Euro (ECB)
- Pound (Bank of England)
- Euro
- Pound
| Central bank | Policy rate | As of | Last move |
|---|---|---|---|
| The European Central Bank (EUR) | 2.50% | October 20, 2026 | September 2026 (2.25% to 2.50%) |
| The Bank of England (GBP) | 3.75% | October 19, 2026 | December 2025 (4% to 3.75%) |
| Country | Yield | Month |
|---|---|---|
| The euro area | 3.47% | September 2026 |
| The United Kingdom | 5.24% | September 2026 |
The Bank of England rate is 1.25 percentage points above the European Central Bank's. The policy rate is the rate a central bank sets for overnight lending (the ECB: official central bank steering rate is the deposit facility rate, fixed rate). The 10-year yield gap is 1.77 percentage points, higher in the United Kingdom. The euro area's figure is Germany's 10-year Bund, the benchmark bond, because there is no single euro-area bond.
What are real interest rates in the euro area and the United Kingdom?
A rate means little without inflation.
| Country | Policy rate | Inflation, year on year | Real rate |
|---|---|---|---|
| The euro area | 2.50% | 3.25% August 2026 | -0.75% |
| The United Kingdom | 3.75% | 3.09% August 2026 | 0.66% |
The real rate is the simple Fisher approximation: the policy rate minus the latest year-on-year consumer price inflation. A positive real rate means cash at the central bank's rate earns more than prices are rising; a negative one means it does not. Right now the United Kingdom has the higher real rate (0.66% against -0.75%). Inflation is the BIS's consumer price series for each economy; the latest month differs by country (August 2026 for the euro area, August 2026 for the United Kingdom).
Is the pound strong, or just strong against the euro?
A bilateral rate hides what a currency does against everything else.
- Euro
- Pound
| Currency | Index now | Ten-year average | Versus its average | Ten-year range |
|---|---|---|---|---|
| Euro | 103.3 | 100.0 | +3.3% | 94.5 to 104.6 |
| Pound | 111.5 | 104.3 | +6.9% | 94.1 to 114.1 |
This answers a different question from the exchange rate above. A currency can gain against one partner and fall against most others. The BIS's real effective exchange rate weighs a currency against its trading partners and adjusts for inflation differences, so a reading above 100 means it is more expensive than in 2020 and below 100 cheaper. In September 2026, the euro was near its ten-year average and the pound was 6.9% above its ten-year average. The "stronger" and "weaker" labels use this site's own cut-off of 5% either side of the average.
Do interest rate gaps move the pound-euro exchange rate?
The textbook says money flows to the higher rate. The last ten years of data say this about this pair:
Over the past ten years, the change in the policy-rate gap and the change in EUR/GBP had a moderate link (correlation 0.20, 39 three-month windows); for 10-year yields, the change in the yield gap and the change in EUR/GBP had a moderate link (correlation 0.20, 39 three-month windows).
How this is measured: for each non-overlapping three-month window, the change in the gap between the two rates (Pound minus Euro, in percentage points) against the percentage change in the price of one pound in euros. A correlation of 0 means no link and 1 or -1 a perfect one; under 0.2 is weak and over 0.5 strong. A link is not a cause, and a weak link over ten years says little about the next three months. This is an observation, not a forecast.
Frequently asked questions: euro vs pound
What is the pound to euro exchange rate today?
As of October 23, 2026, 1 euro = 0.8373 pounds, or 1 pound = 1.1943 euros. That is down 3.7% for the euro over the past year, down 3.9% over three years and down 1.1% over five years against the pound.
Is the pound stronger than the euro?
It depends what "stronger" means. Against the euro alone, the euro is down 3.7% over a year. Against a basket of trading partners, adjusted for inflation (the BIS real effective exchange rate), the pound is 6.9% above its ten-year average and the euro is near its ten-year average.
Which has the higher interest rate, the European Central Bank or the Bank of England?
The Bank of England policy rate is 3.75% and the European Central Bank is 2.50%, so the Bank of England is higher by 1.25 percentage points. The 10-year government bond yields are 5.24% in the United Kingdom and 3.47% in the euro area.
What are the real interest rates in the euro area and the United Kingdom?
The real rate is the policy rate minus year-on-year inflation: -0.75% in the euro area (2.50% less 3.25%) and 0.66% in the United Kingdom (3.75% less 3.09%).
How much has EUR/GBP moved in five years?
Over the past five years EUR/GBP has ranged from 0.8258 to 0.8966, and its volatility over the past year was 3.4% a year, against 5.1% over five years.
Why does the pound-euro exchange rate matter for stock investors?
Companies that earn or pay in more than one currency see their reported profits move with exchange rates, and a currency's strength affects imports, exports and the value of overseas investments. Use the screener to look at the companies themselves, and dollar vs euro for money supply and cash in circulation.
Where does this data come from, and how often is it updated?
Policy rates, inflation and the real effective exchange rate come from the Bank for International Settlements (BIS) Data Portal; exchange rates and 10-year yields come from FRED (the St. Louis Fed). The page is rebuilt every week.
Where does this data come from?
- Policy rates, inflation and strength: BIS Data Portal: central bank policy rates, consumer price inflation (year on year) and the real effective exchange rate index (broad basket, 2020 = 100).
- Exchange rates and 10-year yields: FRED (St. Louis Fed): the Federal Reserve's H.10 daily exchange rates and OECD 10-year government bond yields.
- Method and limits: every figure is shown as published, with its date, and refreshed weekly (data as of October 23, 2026). There is no composite score, and nothing here predicts where a rate goes next. Read the Editorial Standards for how this site handles data.
Educational content only, not investment, currency-trading or tax advice. Exchange rates and interest rates move for reasons no single table captures.