Despite the UK election looking like an easy win for Labor, the
party has announced scant details of its fiscal policy intentions, making it
difficult to assess what – if any impact – the election will have on markets.
Labor does, however, support the BoE’s plans to launch its own central bank
digital currency, A Labor-party win is unlikely to alter market expectations
around BoE monetary policy on interest rates, according to experts, who say
that whichever party wins, will have to show a high degree of fiscal restraint. The markets
don’t need to fret about the election leading to a sudden reduction in
long-term productivity as they did ahead of the 2017 and 2019 elections.
Dr. Kamaran Qader Yaqub,
Financial Consultant at
Investment Spot company.