Standard Life Investments today spoke out against market scaremongering and talk of a potential sterling crash.

Speaking at a media briefing at London's Andaz Hotel, the asset manager dismissed reports that a hung parliament at the next election may lead to unwanted procrastination with regards to the implementation of credible fiscal policy, saying ‘all three parties know what needs to be done’.

Andrew Milligan, investment director and head of global strategy at Standard Life Investments, explained that volatility in the currency is likely to be witnessed for some time to come, but added that the markets have been reacting to media speculation.

He explained, ‘I don’t put a high probability on a sterling crash. Any government will put into place a credible fiscal policy. Sterling will be volatile in the run up but any UK government will come through with a credible policy to reassure the credit ratings agencies and the markets.

‘They all know what needs to be done but in terms of fiscal policy. Investors need to take account of the short term trading.‘

Milligan said that greater thread to global stability was the ongoing state of consumer finances.

He added, ‘There is a lot of growth in the global economy but we still need to look at consumer spending. Car sales in the US came out last night at another 10 million figure; at their peak this was 15 million.