Faisal Islam: Iran war is having a dramatic effect on the UK economy

There is nothing like being asked to explain to the British public on Nicky Campbell's Five Live show why missile attacks on an Iranian oil field create a domino effect, reverberating in the mortgage markets.

“There is nothing like being asked to explain to the British public on Nicky Campbell's Five Live show why missile attacks on an Iranian oil field create a domino effect, reverberating in the mortgage markets”

BBC

I have just emerged from the Bank Of England where I interviewed the governor on behalf of broadcasters.

The bottom line is the Bank did not cut interest rates, as was the clear expectation before the war started.

BBC

Inflation will not now fall to the 2% target, as was also expected before the war.

The Bank's forecasters said inflation could reach 3.5% in the coming months on the basis of Wednesday's oil and gas price.

“There is nothing like being asked to explain to the British public on Nicky Campbell's Five Live show why missile attacks on an Iranian oil field create a domino effect, reverberating in the mortgage markets”

BBC

If Thursday's spike in oil and gas prices is sustained it could go much higher.

No surprise that the governor, and the chancellor, are calling for de-escalation.