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20 Apr 2015
UK political uncertainty set to linger – JP Morgan
FXStreet (Barcelona) - The Economic Research Team at JP Morgan, comments that the stability concerns after the formation of a potential coalition government, will likely extend the political uncertainty in UK beyond May.
Key Quotes
“As the May 7 UK election draws closer, opinion polls continue to suggest that no single party will win an outright majority. A formal coalition of parties also looks unlikely, pointing to a potentially less stable minority government where one of the main parties will seek support from the others on a case by- case basis. Reaching and then maintaining such an arrangement is likely to extend political uncertainty beyond May.”
“With most parties minded to implement less austerity than in current plans, the fiscal drag next year may turn out to be smaller than expected.”
“And with the UK labor market showing ongoing signs of strength as price increases are set to reaccelerate, attention is likely to turn toward monetary policy normalization.”
Key Quotes
“As the May 7 UK election draws closer, opinion polls continue to suggest that no single party will win an outright majority. A formal coalition of parties also looks unlikely, pointing to a potentially less stable minority government where one of the main parties will seek support from the others on a case by- case basis. Reaching and then maintaining such an arrangement is likely to extend political uncertainty beyond May.”
“With most parties minded to implement less austerity than in current plans, the fiscal drag next year may turn out to be smaller than expected.”
“And with the UK labor market showing ongoing signs of strength as price increases are set to reaccelerate, attention is likely to turn toward monetary policy normalization.”