Bond

Nearly 800,000 homeowners might experience a significant monthly increase in their mortgage payments, with the Bank of England expected to keep borrowing costs high and fixed-rate mortgage rates on the rise. Market projections suggest a potential decrease in rates, while research shows that households transitioning to deals with higher payments could face an average increase of £240 per month by mid-November.

The Bank of England is expected to hold interest rates steady at 5.25% on Thursday, despite persistently high inflation, and will release its latest economic forecast alongside the announcement. This decision comes amidst ongoing discussions surrounding economic growth ahead of the forthcoming general election.

Japan's real wages have been stuck in a relentless downward spiral for 24 consecutive months, with March marking yet another decline of 2.5%. The rising cost of living continues to outpace nominal wage increases, leaving workers with shrinking purchasing power and raising concerns about the sustainability of economic growth.

Westpac's chief economist, Luci Ellis, shares insights on the global economy potentially entering an era of higher interest rates due to factors like looser fiscal policy and the climate transition. She predicts that the Reserve Bank of Australia will likely keep rates unchanged until November as the economy faces differences from the US and household pressures are expected to ease through fiscal policy measures.

President Biden's administration plans to overturn Trump's corporate tax cuts in 2025, aiming to raise revenue by increasing taxes on corporations and high-income earners while preserving tax cuts for middle-class households. This move is likely to spark a clash with the Republican party and lead to intense negotiations over the future of the tax law.