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WHAT IMPACT WILL POLITICAL UNCERTAINTY HAVE ON THE MARKETS?

JONATHAN LOYNES | CAPITAL ECONOMICS
“Even under a hung parliament, at least some form of additional plan to improve the fiscal position is likely to be forthcoming after the election. As and when fiscal worries finally ease, at least some of the current pressure on the pound should be relieved.”

MICHAEL SAUNDERS| CITIGROUP
“We doubt that a hung parliament would produce a sufficient coalition for fiscal consolidation to avert marked weakness in sterling and gilts. Indeed, we suspect that in the event of a hung parliament, major fiscal consolidation would probably only occur if there has already been a severe financial market crisis.”

PETER DIXON | COMMERZBANK
“The markets abhor a vacuum and concerns about political outcomes are likely to dominate the sterling sentiment in the weeks to come. In the longer-term, the strength of sterling will depend on the plans put in place by the next government to curb the deficit. But we will not be able to make any judgements about that yet.”