GDP reading ties in with some surveys suggesting UK plc has kept up momentum despite rising fuel costs

The UK economy unexpectedly grew during the first full month of the Iran war, according to official figures, suggesting the Middle East conflict has not yet affected growth as much as feared.

Figures from the Office for National Statistics (ONS) showed growth of 0.3% in gross domestic product (GDP) in March, from a revised 0.4% rise in February and 0% growth in January. The ONS had originally estimated that the economy grew 0.5% in February and 0.1% in January.

As Keir Starmer’s leadership totters, investors warn a Labour leadership contest ignoring public finances and market realpolitik could be disastrous

A rise in borrowing costs and warnings to avoid a “Liz Truss moment”. As Keir Starmer faces a potential leadership challenge, the spectre of the bond market looms large.

Amid febrile conditions in Westminster, the prospect of Britain switching prime ministers for a sixth time in seven years has fuelled a sharp sell-off in the market for UK government debt.

Sarah Breeden predicts ‘adjustment’ due to elevated risk including private credit and highly valued AI stocks

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Record-high global stock markets do not reflect the risks in the global economy, and will fall back, a deputy governor at the Bank of England has said.

Sarah Breeden, the deputy governor for financial stability at the Bank, fears that macroeconomic risks are not fully priced into equity markets. She cited concerns about private credit markets, highly valued artificial intelligence stocks, and other “risky valuations”.

Annual March rate shows impact of Iran war, which also pushed up cost of food and air fares

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UK inflation accelerated to 3.3% in March after the Iran war triggered the biggest jump in fuel prices for more than three years.

In the first official snapshot of the damage to living standards in Britain from the US-Israeli war on Iran, the Office for National Statistics (ONS) said the consumer prices index increased last month from a rate of 3% in February. The rise matched the forecasts by City economists.

Finance chiefs to join exercise in Washington designed to assess how they would handle collapse of significant bank

The bosses of the central banks and treasuries of the UK, US and EU are to take part in a war game in Washington on Saturday to test how they would handle the collapse of a globally significant bank.

Amid growing unease over the risks to global financial stability, the most senior officials from the US Federal Reserve, the European Central Bank and the Bank of England – including its governor, Andrew Bailey – are expected to take part.