China and US Consider Rate Cuts to Boost Economy

China's central bank has lowered key interest rates in an effort to support its struggling economy, with further cuts expected as the US Federal Reserve enters a rate cut cycle. The move aims to encourage banks to provide more loans and tackle issues such as a weak real estate sector, low consumer spending, high youth unemployment, and geopolitical tensions.

Meanwhile, in the US, former Fed vice-chair Clarida predicts three rate cuts this year as inflation cools, potentially attracting investors with attractive fixed-income returns and reduced currency hedging costs. However, unexpected factors like inflation, economic slowdowns, or geopolitical risks could influence the rate cuts.

In the UK, the property market is showing signs of growth as buyers anticipate interest rate cuts and lower mortgage rates. This has led to increased interest from Hong Kong and mainland Chinese buyers, although new tax measures and non-domiciled tax schemes may impact investors.

Other factors influencing the market include inflation, home prices, housing demand, and potential political changes such as the Labour Party's proposed tax on private school fees.