UK's general election outcome to leave investors in the lurch

London

WHOEVER wins the UK general election in less than three months, investors could be in for a bumpy ride.

That's according to banks including Morgan Stanley and Deutsche Bank, which say a Conservative-led government could precipitate a British exit from the European Union, while a Labour-led one risks letting up on cutting the budget deficit. Either could weaken the pound, push up bond yields and put pressure on the Bank of England to raise interest rates, economists and strategists say.