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Liberation Day: "The chaos delivered by Trump's speech across the pond yesterday could benefit the UK's borrowers"

ended 03. April 2025

Markets believe a rate cut from the Bank of England is now more likely following Trump's Liberation Day speech last night. Newspage asked brokers if the US President has just delivered a boost for the UK's borrowers? Their views are below.

8 responses from the Newspage community

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Daniel Hobbs
CEO at New Leaf Distribution
The chaos delivered by Trump's speech across the pond yesterday could benefit the UK's borrowers. Markets now believe there will be a better chance of a rate cut at the next meeting of the Monetary Policy Committee in May. Though the impact of Trump's sweeping tariff changes on businesses in many sectors could hit hard, mortgage holders may benefit if more policymakers believe a cut is now necessary to protect the economy.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
Trump’s Liberation Day speech has added yet more volatility to global markets and made a Bank of England rate cut more likely, especially if US-led trade tensions slow global growth. While any cut would be welcome news for borrowers, it’s important to remember the Bank will remain cautious and data-driven. That said, if economic uncertainty deepens, a lower base rate could ease pressure on mortgage holders and stimulate lending. In that sense, Trump’s unpredictability may ironically hand borrowers a short-term win. Of course, it’s hardly the kind of stability markets or households really want.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Trump's tariffs could be a catalyst for those rate setters sitting on the fence come the May meeting. The chances of a 25 basis point cut were already high, but the turmoil that has been unleashed from the other side of the pond could make the cuts a reality especially if the US Fed and ECB act as well.
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Justin Moy
Managing Director at EHF Mortgages
Though it's too early to see what the Bank of England will do at this stage, the new tariffs have the potential to worsen inflation, and even if we do negotiate a better deal, these worldwide tariffs may push prices higher. I suspect the MPC will adopt a 'wait and see' approach before any decisions on the base rate will be made.
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Bob Singh
Founder at Chess Mortgages
Liberation Day has become Deliberation Day for governments worldwide as they digest the inedible tariffs imposed by Trump. Exports to the USA will decline and, with lower output, economies may suffer and GDP forecast could be decimated. This further increases the possibility of lower interest rates and an adjustment in exchange rates. Tense times lie ahead but borrowers may well benefit if rates come down on the back of the Rose Garden speech.
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Harry Goodliffe
Director at HTG Mortgages
A potential rate cut is definitely a step in the right direction, but we’ve been here before—nothing’s guaranteed. If it happens, it’ll be a welcome relief for homeowners and landlords who’ve been stretched by high borrowing costs. But until the Bank of England actually pulls the trigger, it’s just talk. The key right now is for borrowers to stay informed, plan ahead and be ready to act when the time comes.
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Chris Barry
Director at Thomas Legal
There's more chance of picking the winner of the Grand National than trying to predict what will happen with the economy over the next 6 weeks. That's hhe impact Trump's speech has had.
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Elliott Culley
Director at Switch Mortgage Finance
Liberation Day is set to impact the markets on a global scale. Many believe this will lead to a slowdown in global markets and, as a result, the base rate in the UK looks more likely to be reduced in May. Nothing is guaranteed, however, as there is a long way to go before that decision is made and the UK government is still trying to work out a deal with the US.