Bank of England Governor Andrew Bailey said U.K. inflation effects from higher energy prices have been limited so far, while the IMF and IEA warned a supply disruption or prolonged conflict could hit global growth and markets.
Bank of England Governor Andrew Bailey said renewed U.S.-Iran hostilities show how unstable the Middle East conflict remains, although higher energy prices have so far had only a limited effect on U.K. inflation. The International Monetary Fund said the global economy is less able to absorb any reduction in energy supplies moving through the Strait of Hormuz, even though the fallout since fighting began in late February has been smaller than many feared because energy prices did not rise as sharply as expected. Separately, IEA chief Fatih Birol reportedly warned that if conflict around the Strait of Hormuz is not resolved within weeks, the global economy could face serious risks.