Archived Discussion Topic

Hung parliment + exchange rate       started by cs74 on 30 Apr 2010   (22769)
Message InfoMessage
From cs74

30 Apr 2010 2:09 AM
(108259)
hi to you all. I have been wondering about this question and cannot find the answer. With the election coming up and with the possibility of a hung parliment, how and possibily bad could this have on the exchange rate ? A few economists has said it could be dire and one saying devastating, but no reason. Is there someone on here that could put a light on this. Many thanks Craig
From jimboman

To cs74

30 Apr 2010 6:31 AM
(108261)
Britains biggest single issue at the moment is tackling its' mounting debts. In a hung parliament, it is harder to get through tough legislation such as raising taxes or cutting public spending. Without drastic (and unpopular) measures, Britains economy could slip further into the mire. The present rate has factored in (to some extent) the possibility of a hung parliament.
From cs74

To jimboman

30 Apr 2010 7:53 AM
(108264)
Thanks for that, explains the prob. Dont think much cop of any party from what they coming up with.