Both the Bank of England and the International Monetary Fund downgraded GDP forecasts due to the Middle East conflict involving Iran.

The entities involved

• Bank of England →

  central bank of the United Kingdom

  • UK bond yields are rising, impacting global market sentiment and challenging traditional safe asset status.14:01
  • Developments in the Middle East are impacting global economic expectations, influencing central bank decisions and financial forecasts for institutions like Danske Bank.00:06
• International Monetary Fund →

  international financial institution

  • The World Bank and IMF, in conjunction with the G20, are leading reform efforts for the international financial system at the FfD4 conference.06:49
  • The Commonwealth Secretariat advanced a reform agenda, seeking changes from the IMF and World Bank.06:49
• Middle East →

  geopolitical region encompassing Egypt and most of Western Asia, including Iran

  • The European Commission is examining reserve options to safeguard European supplies amid instability in the Middle East.14:10
  • Attacks on shipping and energy infrastructure intensified in the Middle East, causing higher oil prices and weighing on equity markets.12:48

Related events

• Energy price shocks from the Middle East war are driving higher energy prices and rising debt levels, involving major financial institutions.Oct 7
• The World Bank provides economic forecasts linking oil prices to geopolitical conflict in the Middle East.Jun 14
• The U.S.-Iran conflict is cited as a factor contributing to global economic uncertainty, impacting the FED.Jun 7
• The Bank of England is reacting to the geopolitical situation, noting that a peace deal in Iran is improving the borrower outlook and that the Iran war fallout is affecting the cost of living.Jun 18
• Westpac is providing key inflation trend data to the RBA, influenced by the widening impact of the Iran conflict on the broader Australian economy.Jun 7