Sterling has rallied strongly as analysts predict Theresa May will secure a larger majority in the June 8 general election
- Latest: Pound hits $1.27 as City expects Tory win
- But shares are down sharply
- Economists expect May to win increased majority
- Eurasia: Hard Brexit now more likely
- General election 2017: Theresa May says opposition to Brexit plan behind decision
The International Monetary Fund has just got Theresa May’s election campaign off to a good start, by hiking their UK growth forecasts.
The IMF now expects Britain’s GDP to expand by 2% this year, up from 1.5% back in January and just 1.,1% last year, outperforming almost every other advanced economy.
“The global economy seems to be gaining momentum – we could be at a turning point.
“But even as things look up, the post–world war two system of international economic relations is under severe strain despite the aggregate benefits it has delivered – and precisely because growth and the resulting economic adjustments have too often entailed unequal rewards and costs within countries.”
Share prices in London are suffering further losses.
The FTSE 100 is now down 151 points, or 2%, at 7175, putting it firmly on track for its worst one-day performance since the Brexit vote.