“Trump’s war on Iran may be cause for caution on interest rates, but the Bank of England should not overreact. Alongside Trumpflation, higher interest rates would increase the pressure on families and businesses.
“The Bank should remain focused on cutting rates as soon as possible. This will provide important support for economic growth, which is part of the Bank’s remit too.
“There are other ways to ease the concerns of financial markets. Governments and central banks should signal that they will act to protect families and businesses, especially with essential energy costs.
“Ministers should urgently bring together a taskforce of government, employers and unions to develop contingency plans. That will enable swift action in the national interest if it becomes necessary.”