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Weekly Economic Briefings > Uk Weekly Economic Briefing

  • April 2017
  • -
  • Oxford Economics
  • -
  • 7 pages

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Theresa May's decision to call a snap general election came as a surprise, but only because her previous denials had been so firm. The opportunity to significantly expand the Government's majority was too good to miss and could make her life a little easier on Brexit and other policy matters. Financial markets have reacted positively to the news, effectively betting that it will remove some of the impediments to a Brexit deal with the EU and, thus, result in a better economic outcome than might otherwise be the case. In this context, our out-of-consensus call that sterling will appreciate to $1.32 by end-2017 and $1.35 by end-2018 may turn out to be too conservative.

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