The war in the Middle East will have a cascading impact on the global economy, even if a ceasefire announced by US President Donald Trump takes hold, World Bank President Ajay Banga told Reuters in an interview.

Banga said global growth could be lowered by 0.3 to 0.4 per cent point in a baseline scenario, with an early end to the war, and by as much as 1pc point if it endures. Inflation could increase by 200 to 300 basis points, with a much higher impact - of up to 0.9pc point - if the war continues, he said.