Overview

• UK lenders, including TSB and MPowered Mortgages, have begun cutting fixed mortgage rates following a sharp decline in swap rates caused by global market volatility.
• Donald Trump's sweeping tariffs have triggered a $9.5 trillion selloff in global stock markets, raising fears of a prolonged economic downturn and recession.
• Financial markets now anticipate up to three Bank of England rate cuts in 2025, with the base rate potentially falling to 3.75% by year-end.
• Former Bank of England deputy governor Charlie Bean advocates for a significant rate cut to 4% in May, citing uncertainty and reduced consumer and business confidence.
• The U.S. Federal Reserve remains cautious, signaling it is unlikely to cut rates soon despite mounting pressure, as it monitors inflation and broader economic impacts.