RBC analyst Cathal Kennedy said the Middle East conflict is lifting goods and
services costs, likely squeezing real household incomes and weighing on
consumption. UK monthly GDP contracted 0.1% m/m in April after a 0.3% m/m rise
in March. Kennedy said the key for the Bank of England's policy outlook is the
degree of the slowdown and how much conflict-driven inflation the economy can
absorb.
