THE regional treasury manager of a High Street bank gave an insight into how next month's election is likely to affect the economy

Lee Killington, of Lloyds TSB, was speaking to members of the Wessex Association of Chambers of Commerce at a breakfast at Players, on the West Wilts Trading Estate, Westbury, on Friday.

Mr Killington said with businesses continually trying to second guess what the markets were going to do next, Lloyds TSB did not expect the election to affect the economy. "There is a general feeling that financial markets will not be affected at all. It's generally thought Labour will win," he said.

However Mr Killington said: "We expect to see interest rates increase this year by a quarter per cent rather than half a per cent, but we are going to be at 4.5 per cent for the foreseeable future. I think a huge hike up in the interest rates might be a nail in the coffin for manufacturing."