The UK election is today, Thursday, 4 July 2024.
The Labour Party is set to win in a landslide.
This via Goldman Sachs, in summary (from a much longer piece) of the economic outlook under the new government:
- Taken together, we would look for slightly stronger near-term growth and slightly higher inflation under a Labour majority than current government plans.
In particular, we would see a growth upside of about 0.1pp in each of 2025 and 2026, which would likely marginally increase wage growth and inflation.
The implications for the BoE would likely be limited, but with risks of slower rate cuts if Labour delivered a sizeable increase in the Living Wage.
