Is a rate cut finally coming? - Finance News Wrapped up

EV incentives, interest rate news, and why Rachel Reeves wants you to invest.

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Hey there,

From electric car incentives to interest rate speculation, surprise inflation stats and a viral toy sending a stock soaring 600%. Welcome to this week’s Finance news wrap-up, your bite-sized breakdown of the headlines that could hit your bank account.

And yes, there’s a new edition of the UK’s favourite economic guessing game: will they cut rates or won’t they? 👀

Let’s get into it.

📉 1. UK Interest Rates: Cut incoming?

BoE Governor Andrew Bailey hinted that interest rates could fall faster than expected if the jobs market continues to weaken. With unemployment creeping up and inflation inching higher, it’s a tightrope moment for policymakers.

Why it matters to you:
A rate cut in August (which markets are now 87% expecting) would reduce borrowing costs, great news if you’re on a variable mortgage or looking to remortgage. But falling rates could also mean lower savings returns, so if you’ve been holding off fixing a savings rate… now’s the time to shop around.

🔌 2. Electric Car Push: £3,750 off a new EV

Drivers can now get up to £3,750 off new electric vehicles under £37,000. The government’s putting £700m behind the plan, focusing on affordable, UK-made models like the Nissan Leaf, not Teslas.

Why it matters to you:
If you’ve been thinking of going electric, this could make it finally stack up. The boost to charging infrastructure and extra funding means fewer excuses for running on petrol. Plus, EVs often have lower running costs—great for long-term budgeting.

📊 3. UK Inflation Rises… Again

Inflation ticked up to 3.6% in June, above expectations and the highest since January. It was driven by food, travel and fashion. With a rate cut on the horizon, this could complicate things for the BoE.

Why it matters to you:
Higher inflation means your money stretches less, especially on essentials. It's also a reminder to review your budget and make sure your savings and income are keeping pace.

🇬🇧 4. Reeves Reframes Investing

Rachel Reeves made waves with her Mansion House speech, vowing to slash financial red tape and change the way we talk about investing. She says we need to ditch the fear-based messaging and get more people, from cash ISA holders to cautious savers, into UK stocks.

Why it matters to you:
More incentives and better communication could make investing feel more accessible. Expect reforms to ISAs and more education-focused campaigns. And if you’ve been sitting on cash savings, now might be a good time to explore how investing could help you grow it.

👛 5. BNPL Crackdown is Coming

From July 2026, Buy Now, Pay Later firms like Klarna will face full consumer regulation, including affordability checks and protections for users.

Why it matters to you:
This is a huge shift. 1 in 3 young adults use BNPL—mostly for beauty, fashion or homeware. These new rules will mean more transparency and fewer chances of getting caught in a debt spiral. If you use BNPL, now’s a good time to review your spending and think of it more like credit than convenience.

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🔍 Other quick headlines to know:

• China’s economy – Grew 5.2% in Q2 but signs of a slowdown loom due to weak demand and US trade war tension.

• Musk’s AI play – xAI now valued at $113bn after a $2bn investment from SpaceX, tying it closer to Tesla and Starlink.

• US Inflation – Jumps to 2.7% in June, driven by Trump’s new tariffs. Experts warn of more inflation pain ahead.

• Renting in the UK – Average rent hits £1,344 (£2,252 in London). Supply is improving but prices remain stubbornly high.

• Labubu boom – Viral toys send Pop Mart stock soaring 600%. Yes, really.

• Bitcoin & Ethereum – Bitcoin cools to $118k after all-time highs. ETH jumps 8% as institutional buyers step in.

• JLR cuts jobs – Jaguar Land Rover trims 500 UK management roles amid tariffs and sales pressure.

Thanks for reading this week’s newsletter. If you found it helpful, share it with a friend who needs to know what’s really going on with the economy right now.

Let’s keep talking money.

Abi x