Late developments: The governor of the Bank of England has said that the “longer” the war in the Middle East continues the “larger” the effects on the UK economy.
Andrew Bailey told LBC’s Tonight with Andrew Marr show:
‘Well, the longer it goes on, I’m afraid to say, but it is rather an obvious point, the effect will be larger. So, I think that’s why it’s imperative that, as I know the government is doing, that everything is done that can be done to alleviate this effect. That’s the critical thing.’
Bailey also said that the best thing for the world economy would be to reopen energy supply lines, “because that is in the best interests of the people of the world.”
FTSE 100 falls 2.35%
And finally, the UK stock market has posted its biggest daily drop in over two weeks.
The blue-chip FTSE 100 index has closed down 242 points, or -2.35%, at 10,063 points.
That’s its biggest one-session decline since 3 March, in the first week of the Iran war.
Housebuilder Barratt (-8.4%) was the top faller, reflecting forecasts of UK interest rate rises this year which would hurt demand for new homes.
Banks also weakened, with NatWest down 8%.
