Around half the UK’s mortgage holders face paying higher rates over the next three years, the Bank of England has warned, while sounding alarm over the potential impact of Donald Trump’s looming return to the White House.
Its latest financial stability report – released twice a year – showed 4.4 million homes were set to refinance at higher rates.
But it added that around a quarter of borrowers were expected to benefit from lower rates, based on current market pricing, as rates have dropped from the highs seen in 2023.
The central bank’s financial policy committee also identified a risk ahead – that higher trade barriers could hit global growth.
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While it did not directly reference Donald Trump’s warning about raising US trade tariffs when he becomes president again in January, the report said such barriers would feed uncertainty about inflation, potentially causing volatility in financial markets.
“A reduction in the degree of international policy cooperation could hinder progress by authorities in improving
the resilience of the financial system and its ability to absorb future shocks,” the report said.
BANK WORRED ABOUT TRUMP IMPACT
The Bank of England did not directly mention Donald Trump today but hinted at the economic risks associated with his presidency.
The central bank…
