MAM's Gray: Rate hikes would push UK back into recession

The UK will be at risk of returning to recession if the Bank of England raises interest rates, says MAM Funds' Martin Gray.

The manager of the £587m Miton Special Situations portfolio warns interest rates hikes would be detrimental to the already squeezed economy, which is challenged by high unemployment and tax increases.  "It does not seem to make any sense, especially with public sector redundancies on the horizon; this could push the economy back into recession," Gray says. With three members of the Bank of England policy committee voting for rises, the manager is concerned a move in this direction would translate into new hazards for the economy. "The interest payments on much personal, corporate a...