As we step into a new month, the financial landscape continues to evolve, with key developments across UK taxation, global markets and central bank policy all shaping the outlook for the months ahead.
Markets both in the UK and abroad are responding to shifting inflation trends and central bank movements. The Bank of England’s next interest rate decision (on the 8th May) is highly anticipated, particularly as UK inflation shows signs of easing. As such, the rate is predicted to move downwards, but there is always room for a surprise!
Meanwhile, volatility in US markets and ongoing economic signals from Europe and China remain crucial indicators for investors to watch. Trump’s current pause on tariffs is allowing for some breathing space in markets, and global inflation is not such a threat, although you will see price increases on buying goods start to come through.
Finally, as the month of May is generally quiet, this is now a great time to get a handle on personal finances. Setting up a budget and/or savings plan, checking your insurances and utility bills and topping up ISAs and Pensions are all excellent tasks to tackle in May.
If sometimes you are unsure of where your income is going each month, then setting up a budget, with savings allocated to go into a designated pot, will mean that you will be on top of your financial situation.
Energy prices are due to fall in July, although the price cap will still be higher than it was in January of this year, due to the sharp increase that happened in April. Ensuring your household is not overpaying for energy will leave more money in your pocket, and a sense of satisfaction of having one-upped the energy companies! Insurance prices have also reduced over the last six months, so it is worth checking the plans you currently have to confirm that you are not overpaying there either.
Putting money into an ISA or Pension at the beginning of the tax year gives it more time to compound (or earn more interest if you are in a Cash ISA) meaning your return will be higher by the end of the tax year.
Here’s to progress, preparation and thoughtful planning.
