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UK Markets Prepare for Interest Rate Cuts Amid Tariffs

4/8/2025

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Summary

Story summary

In the wake of President Trump's tariff announcement, UK markets brace for three anticipated interest rate cuts from the Bank of England, potentially lowering the base rate to 3.75% by 2025. This shift could ease mortgage rates, offering relief to borrowers, while MPowered Mortgages has already started slashing fixed rates in response to declining swap rates.

History

Historical Context

President Trump's tariff announcement echoes the historical context of the Smoot-Hawley Tariff of 1930, which raised import duties and triggered retaliatory tariffs globally. This led to a severe contraction in international trade and deepened the Great Depression, illustrating the potential economic risks of protectionist policies today.

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Story summary

In the wake of President Trump's tariff announcement, UK markets brace for three anticipated interest rate cuts from the Bank of England, potentially lowering the base rate to 3.75% by 2025. This shift could ease mortgage rates, offering relief to borrowers, while MPowered Mortgages has already started slashing fixed rates in response to declining swap rates.

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