Bank of England: Wave of global elections to impact financial system worldwide

The Bank of England has expressed concern that elections in many countries around the world could destabilise the financial systems of numerous states, reports Kazinform.

Financiers are worried about potential policy changes from new governments in major economies, including the US, where Donald Trump is campaigning for another presidential term.

The unexpected announcement of parliamentary elections in France, where Marine Le Pen's far-right party is forecasted to win, has already shown how political uncertainty can affect economic growth forecasts and cause volatility in financial markets, impacting government debt prices, according to the Bank of England's Financial policy committee.

The Bank of England's financial stability report highlights increased political uncertainty globally, which could heighten geopolitical risks, raise the cost of government borrowing, and lead to global fragmentation, potentially affecting the UK's financial stability.

This year, political races will take place in more than 80 countries, representing over half of the world's population, including the UK, where a general election will be held on July 4.