BOE Financial Policy Committee Minutes – April 2026

Global Economic Impact of Middle East Conflict

Recent turmoil in the Middle East has caused a major disruption in global supply chains, leading to sharp increases and heightened volatility in energy prices and government bond yields worldwide. Although the financial sector has managed to withstand these challenges so far, the ongoing crisis is expected to slow economic growth, push inflation higher, and create more restrictive financial conditions.

These developments may exacerbate existing weaknesses previously highlighted by the Financial Policy Committee, such as vulnerabilities in sovereign debt markets, elevated valuations of risky assets, and instability in credit markets—particularly within private credit. The negative effects on the global economy could be significant.