Economic discourse shifted over the second quarter, following the announcement of an early UK general election on 4 July. Polls were largely suggestive of a landslide victory for Labour. Consequently, the announcement of a Labour win had little impact on financial markets, with sterling, equity markets, and gilt yields broadly unchanged.
The second kev interest rate cut by the SNB in June will enable the downward trend in debt financing costs to continue, although we are not expecting any further cut in interest rates before the end of 2024.