Watching ‘Coalition’, a Channel 4 TV political drama in late March I couldn’t help thinking that the frenzied days in 2010 when Nick Clegg’s LibDems formed a Government with the Tories in Britain might well be repeated after the 7 May general election – albeit by different parties. How this scenario plays on Sterling will certainly be watched closely.
One scene in the drama showed senior Tories attending a meeting with LibDem counterparts post an inconclusive general election result, being handed Bank of England and HM Treasury briefing papers. Officials stressed that failure to resolve matters quickly over a hung parliament would unsettle the markets. And, if there’s one thing markets don’t like it’s uncertainty