In the final run up to the Election, Andy Cuthbert, managing director of dot financial services, has warned with both the huge national deficit and inflation rising faster than previously anticipated the elected party, whichever it may be, will need to act cautiously.
Andy commented: “Reports from the Bank of England’s Monetary Policy Committee have suggested some concerns that inflation is picking up at a rate faster than previously anticipated. The potential upshot of this could lead to interest rates rising sooner and to an eventual point higher than previously anticipated.
“The key point for whichever party takes power will be to maintain the very delicate balance between the nurturing of the economy whilst keeping any inflationary pressures in check. If inflation rises before the economy is able to sustain itself, we could find ourselves in a very difficult position with most vital indicators pointing in the wrong direction!
“I personally believe that the choices which will be taken in the next political term will be amongst the most important and influential for a generation.”
Reports have recently suggested that a hung parliament would damage potential economic recovery due to indecision and inaction, Andy continued, “I don’t see the possibility of a hung parliament as a negative result. There are plenty of other countries that run perfectly well on a coalition basis without the continual switch from one ideal to another on change of Government. In fact, a strong majority often leads to less consideration or discussion on action which is not always in the interests of anyone. One thing is certain though, should a hung parliament be the outcome of this election, political parties will need to become far more open to compromise and consultation than previously!”
