Overview

• Economists warn that Rachel Reeves's Budget and Donald Trump's US election win could prolong high mortgage rates in the UK.
• The Bank of England's recent interest rate cut may slow further reductions, with rates potentially only reaching 3.5% by early 2026.
• Trump's potential tariff policies could contribute to global inflation, affecting UK economic conditions and interest rates.
• The UK Government faces increased pressure to address the cost of living as inflation concerns grow following Trump's victory.
• Critics argue the Bank of England has misjudged the inflation risk, potentially compromising its independence with politically influenced decisions.