UK chancellor of the exchequer Rachel Reeves. Photo: PA
The UK will suffer a bigger economic hit from the Iran war than any other Group of Seven (G7) nation this year as growth weakens, inflation accelerates and interest-rate cuts are abandoned, the Organisation for Economic Cooperation and Development (OECD) warned.
The Paris-based think tank lowered its UK growth forecast to 0.7pc from 1.2pc in December and increased its inflation projection to 4pc from 2.5pc. While its global forecasts also worsened, no other G7 country saw as sharp a downgrade.