UK economy 'at risk of recession' as bond markets project FOUR Bank of England interest rate rises

The conflict in Iran has disrupted Chancellor Rachel Reeves’ economic strategy, with Treasury officials warning of a "very difficult Budget" later this year. Labour began 2026 promising stability and lower living costs, with plans built on falling inflation, easing interest rates and improving business confidence. Those expectations have been undermined by escalating geopolitical tensions, with the Bank of England signalling potential interest rate increases. Economists have warned the crisis