1431 GMT - The U.K. faces a "non-negligible risk of a mild recession" due to the effects of the Middle East war, Nuveen's Laura Cooper says in a note. Economic growth is weak and the unemployment rate is at a multi-year high of 5.2% but the risk of inflation due to high energy costs limits the Bank of England from cutting interest rates to support the economy, Cooper says. U.K. public finances are weakening, making it difficult for the government to offer support to households amid rising energy costs. Should high energy costs lead the BOE to raise interest rates, it increases the risk of U.K. sliding into a mild recession, she says. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
March 24, 2026 10:31 ET (14:31 GMT)
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