Officials in the U.K. are debating how quickly to reduce the government's record deficit, and an inconclusive result to the national election could bolster Bank of England Governor Mervyn King's influence in the matter. "Under a hung Parliament, I would have thought he'd feel the right to be even more vocal," said Jonathan Loynes, chief economist for Europe at Capital Economics. "There's some doubt on whether a bigger fiscal squeeze can be implemented, and he'd feel the need to urge the parties to reach a common view on that."

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