LONDON, April 1, 2026 (BSS/AFP) - The Bank of England on Wednesday said the Middle East war had caused "a substantial negative supply shock to the global economy", increasing risks to the financial system. In its previous Financial Policy Committee report in December, the BoE identified risks posed by an overvalued AI sector and elevated government debt. "The conflict has made the global environment materially more unpredictable and followed a period in which global risks were already elevated," it said Wednesday. The BoE warned that the fallout could impact "the provision of vital financial services to UK households and businesses". Ahead of the BoE update, British Prime Minister Keir Starmer sought to reassure the UK public over the financial fallout.
