Economic Review March 2026

Middle East conflict hits UK economy, interest rates on hold and UK wage growth continues to ease.

Key takeaways

• Office for Budget Responsibility warned the Middle East conflict will impact both global and UK economies significantly
• Last month, Bank of England policymakers unanimously voted to maintain interest rates at their current level of 3.75%
• Office for National Statistics figures indicate pay growth is slowest for five years and consumer confidence dipped