Markets Reserving Judgement on Truss: BNY Mellon's Yu

The video discusses the market's preferences for a new UK Prime Minister, emphasizing stability and the importance of Jeremy Hunt's proposals. It highlights unresolved issues like Brexit and the Northern Ireland protocol as sources of instability. The economic outlook suggests weaker growth and potential inflation challenges, with the Bank of England's forecasts in focus. The role of the market as a sounding board for political decisions is explored, noting that the Conservative Party may consider market reactions when selecting candidates. Overall, the fiscal plan is expected to remain stable, minimizing market volatility.

What are the potential consequences for UK assets if inflation does not decrease?

In what ways might the Conservative Party use market reactions in their decision-making process?