Shock summer election in Britain predicted to deliver 'historic' result

• U.K. Prime Minister Rishi Sunak surprised the public, the media and politicians with a national election date of July 4.
• Forecasts suggest his right-wing Conservative Party is likely to be ousted after 14 years in power.
• Financial markets have largely factored in a change of government this year, and seem "sympathetic" to the idea of a Labour government, analysts said.

U.K. Prime Minister Rishi Sunak ended months of speculation this week by announcing a national election on July 4, as forecasts suggest his right-wing Conservative Party is likely to be ousted after 14 years in power.

News of the vote came as a surprise to the public, the media and much of Sunak's own party. It had been expected to take place in the fall, ahead of a deadline of Jan. 28, 2025, giving the Conservatives more time to turn around weak poll ratings in which they have lagged the center-left Labour Party for more than two years.

Speaking while getting drenched by rain in a press conference outside 10 Downing Street Wednesday, Sunak said: "Uncertain times call for a clear plan and bold action."

He stressed that recent economic data was a significant part of his decision-making, telling the BBC's "Today" program Thursday that inflation had gone "back down to normal," the economy was growing and wages were "rising sustainably."

Price rises in the U.K. have cooled from a peak of 11.1% in October 2022 to 2.3% in April 2024, figures released Wednesday showed, after the politically independent Bank of England hiked interest rates for 14 straight meetings.

The U.K. economy fell into a shallow recession in the latter half of last year, before recording 0.6% growth in the first quarter of 2024.

"I think it is clear that while there is work to do and people