By David Milliken and Phoebe Seers LONDON, April 1 (Reuters) - Bank of England Governor Andrew Bailey said on Wednesday that markets were still getting ahead of themselves by pricing in interest rate hikes by the central bank in response to the hit to the British economy from the Iran war.

The Bank of England (BoE) said on Wednesday the Iran war had dealt “a substantial negative supply shock” to the world economy, increasing the danger that pre-existing threats to financial stability materialise.