Finance Matters Insights
Interest rates, the UK stock market & Gold
If you're keeping your ears peeled to the markets…here's a quick round-up of three things worth knowing this week, and what they actually mean for your money.
🏦 The Bank of England held rates at 3.75%
The Monetary Policy Committee (MPC) voted 8-1 to hold the base rate at 3.75%. One member actually voted to raiserates back up to 4%, which tells you something about where the conversation could be heading.
Latest CPI inflation was recorded at 3.3%, well above the 2% target so the prospect of further cuts this year has gotten noticeably quieter.
→ What it means for you:
If you're on a tracker mortgage or coming off a fixed rate soon, don't expect relief any time soon. Swap rates (which lenders use to price fixed deals) have actually risen in recent weeks. If you're due to remortgage in the next 6 months, start looking at your options now rather than waiting for cuts that may not come.
If you're a saver, this is good news. Top easy-access Cash ISAs are still paying up to 4.30% AER. Rates this high on cash won't last forever, so if you've been meaning to switch providers or open a new account, now's the time.
Don't leave your emergency fund earning 0.5% in a high street current account.
📈 The FTSE 100 is trading at record highs
The FTSE 100 hit an all time record in January and has been holding in that territory since. It was up over 21% in 2025, the biggest annual rise in 16 years, and actually outperformed the US S&P 500.
→ What it means for you:
Most people assume the only way to grow wealth in the stock market is to chase US tech. However, there are stats to prove that the UK market is also showing some strength.
If you've been investing in a globally diversified index fund inside your Stocks & Shares ISA, you probably would have benefited from this without having to handpick your winners.
The takeaway is the same as it always is. You don't necessarily need to time the market or pick the right country, sometimes being consistently invested in a low-cost, globally diversified fund coupled with time, does the work for you.
🪙 Gold has been quietly soaring
Gold prices have been hitting record highs through 2025 and into 2026. To put that into context, gold is up ~40% in the last 12 months alone. Every other week, someone in my DMs is asking whether they should be buying it.
→ What it means for you:
Gold is having a moment, but it's not a substitute for proper investing. It pays no dividends, generates no earnings, and historically delivers lower long-term returns than equities. What it does do is hold its value when markets are rocky and when geopolitical tensions are high, which is exactly why it's been performing so well.
For those who do choose to hold gold, it's typically held as a small portion of a wider portfolio rather than as a core holding. It tends to play the role of a cushion when markets get rocky, rather than being the engine that drives long-term growth.
The markets are always doing something, some of it matters, some of it is just noise.
Either way, hopefully that's some insight to lead you into the week.
F
Fisayo Martins
Founder at Finance Matters UK
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