[ad_1]
Global financial markets have been on a rollercoaster ride over the past few days, but now, with President Donald Trump having paused his “retaliatory” tariffs, the situation should stabilise.
Here, we outline how the pound in your pocket has been affected.
Stock markets, bonds and currencies moved sharply after Mr Trump put a 90-day pause on tariffs other than the base 10% tax slapped on almost all imports to the US. China still faces a levy of 125% on the goods it exports to the US.
But there have still been some impactful changes since his so-called “liberation day” tariff announcement last week.
So, what’s happened?
Well, last week two more interest rate cuts were expected by the end of this year, but now traders are pricing in three cuts by the Bank of England.
Borrowing will become cheaper as the interest rate is now anticipated to be brought down more than previously thought, to 3.75% by the end of 2025 from the current 4.5%.
Tariffs latest: Beijing takes fight to Trump
Money blog: ‘Barclays just sent me £50’
It’s not exactly for a good reason, though. The trade war means the UK economy is forecast to grow less.
This lower growth is what’s making observers think the Bank will cut rates sooner – making borrowing cheaper can lead to more spending. Increased spending can stimulate economic growth.
What does this all mean for you?
Some debts, like credit card bills, will become a bit cheaper.
Mortgages
Crucially for anyone soon to re-fix their rate, this means mortgage costs are falling.
Already, the typical two and five-year fixed rate deals are coming down, according to data from financial information company Moneyfacts.
[ad_2]
