Managers: UK will avoid double-dip but expect more QE

The UK economy will avoid a double dip recession but a new round of quantitative easing could be on the cards, according to fund managers.

A Skandia Investment Group (SIG) survey polling ten leading UK equity managers including Schroders' Richard Buxton and AXA Framlington's Nigel Thomas reveals a united belief the country will not fall back into recession - although growth will be slow or non-existent. The fact the UK economy will "bump along" in a slow or no-growth environment could jeopardise the coalition government's recovery plan and perhaps necessitate further quantitative easing next year. "We do not expect the UK to fall back into recession over the next few months," said Colin McLean at SVM. "QE should keep ...