Lloyds takes £151m hit from Iran war as it forecasts rise in UK unemployment

Bank expects its base case for GDP growth to be 0.5% this year, lower than IMF's 0.8% prediction for Britain

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Lloyds has warned that the economic fallout from the Middle East conflict could cost it 151m amid rising unemployment and inflation and a slowdown in the housing market.

The FTSE 100 group, whose brands include Lloyds Bank, Halifax and Bank of Scotland, issued a downbeat economic forecast that it said reflects the stagflationary consequences - the double hit of rising inflation at the same time as slower economic growth - for the UK and global economies.