Business leaders expect a “volatile” time as they manage the fallout from high inflation during a time of political uncertainty as elections play out in the UK, the US and in Europe.

The warning came from Mark Kennedy, a partner at Forvis Mazars, on Board Agenda’s The Macro Memo podcast. The latest episode explores the impact of elections on business and economics.

Kennedy was reflecting on the way business adapted to high interest rates and inflation and how those lessons will inform their approach now, as rates remain high.

“Business leaders are very rational. They’ve done the analysis and said, ‘This is going to be volatile for a while.’”

France is about to stage National Assembly elections and the US will go through presidential elections in November. European politics have just seen shift to the right. The UK goes to the polls on 4 July, with pollsters expecting a win for the opposition Labour Party.

‘Trade frictions’

George Lagarias, chief economist with Forvis Mazars, said what investors would really need to see is resolution of the trade frictions cause by Brexit and a more predictable business environment.

Lagarias said: “I think Britain’s strength is boredom. No offence—because ‘boring’ means predictable. ‘Boring’ means legal systems where laws and regulations are not changed too often. That is much needed by business.”

Lagarias added that a shift to the right in Europe could cause issues for trade. “The more we stray from the centre, the more we stray from mainstream politics, the more problems get out of hand.”

Tune in to the latest episode of The Macro Memo podcast for analysis and insight about the impact of upcoming elections on business and the economy, in partnership with Forvis Mazars.

Listen to the full podcast here