A warning has been issued to UK savers due to the ongoing global tariffs war sparked by US President Donald Trump. According to a personal finance expert, interest rates are expected to drop, potentially affecting savers’ returns on their cash.
- Lower borrowing costs may provide relief for mortgage holders, but they could spell bad news for savers, who have only recently seen decent returns on their cash.
- Market uncertainty and volatility continue to cloud the outlook for UK investors and savers, with stock market swings affecting investors’ confidence.
- Experts advise investors to avoid making knee-jerk decisions based on short-term market noise and focus on long-term financial goals.
Myron Jobson, senior personal finance analyst at Interactive Investor, expressed his concerns about the impact of Trump’s tariff wars on the UK economy and interest rates. “The market is now predicting that interest rates will fall more quickly than previously anticipated as policymakers move to shield the stuttering UK economy from a potential downturn – a risk exacerbated by Trump’s tariff wars,” he said.
“The Consumer Prices Index (CPI) rose by 2.6% in the 12 months to March 2025, down from 2.8% in the 12 months to February, the ONS revealed today. This decline in inflation rate is attributed to various factors, including a decrease in recreation and culture, and motor fuels, as well as a larger downward effect from housing and household services.
Harry Mills, Director at Oku Markets, noted that the UK inflation rate eased to 2.6% in March, a greater fall than the 2.8% forecast. However, he emphasized that the data is before the effects of April’s tax rises and any tariff-related inflationary effects.
| Expert Opinion | Comment |
|---|---|
| Rohit Kohli, Director at The Mortgage Stop | “Another fall in inflation will all but seal the deal on a May rate cut. With CPI now at 2.6% and core inflation slowly heading in the right direction, the Bank of England is rapidly running out of excuses to keep rates where they are.” |
| Ben Perks, Managing Director at Orchard Financial Advisers | “It’s time for the Bank of England to get the scissors out. There’s surely no other option but to cut now — the question is, by how much? Could we now be looking at a 0.5% trim? This is great news for borrowers and it’ll be great to see how swap rates and lenders react this morning.” |
Ben Perks, Managing Director at Orchard Financial Advisers, highlighted the potential benefits of a rate cut for borrowers, stating that it would provide much-needed breathing space and offer relief as borrowers roll off fixed deals in the summer.
Experts emphasize the importance of maintaining a well-diversified portfolio and reviewing investment strategies to ensure they remain aligned with your risk tolerance and time horizon.
Myron Jobson advised against making knee-jerk decisions based on short-term market noise and instead encouraged investors to focus on their long-term financial goals. “Market turbulence is a natural feature of investing,” he said. “Investors should continue to weather the storm with a clear head and a well-diversified portfolio.”
The ongoing global tariffs war has raised concerns about the impact on UK savers.
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