Bank of England says UK banks can increase riskier mortgage lending; Nvidia becomes first $4tn company – as it happened

Rolling coverage of the latest economic and financial news, as BoE recommends banks can issue more high loan-to-income level loans

• Copper prices in US hit record high after Trump announces 50% tariff
  

• Trump threatens to escalate trade war amid confusion over new tariff rates

Carsten Menke, Head of Next Generation Research at Julius Baer, says the copper tariffs will be inflationary domestically in the US and deflationary internationally - which matches the price action we've seen since last night.

Menke also points out that the jump in US copper prices (13% yesterday) is less than the 50% tariff, implying traders expect some imports will be exempt, saying:

President Trump announced the imposition of 50% import tariffs at a cabinet meeting yesterday. While US-traded futures jumped on the news, the price differential is well below the tariff level, pointing to expectations of exemptions for key suppliers or expectations of different demand dynamics.

As already mentioned, we remain of the conviction that the tariffs will be inflationary domestically in the US and deflationary internationally. Generally, we do not see a supply-constrained market, but we want to wait for the dust to settle before reassessing our outlook.

The latest indicators point towards continued expansion in global growth, supported by sustained consumer spending and to some extent, front-loading activities. The global growth outlook would remain supported by positive labour market conditions, less restrictive monetary policy and fiscal stimulus.

This outlook is weighed down by uncertainties surrounding tariff developments, as well as geopolitical tensions. Such uncertainties could also lead to greater volatility in the global financial markets and commodity prices.