Woodford: UK interest rates could remain at historic low until 2017

Neil Woodford has told Investment Week a "fragile" UK economic recovery could yet mean base rates stay at a record low for the next three years.

Speaking exclusively to Investment Week, the star stockpicker questioned both the sustainability of the UK recovery and the expectation that it will be the first major developed economy to raise rates after the financial crisis. With the Bank of England now predicting GDP growth of 3.4% for 2014, and other economic data such as unemployment figures also improving, BoE Governor Mark Carney has said the base rate of interest could be as high as 3% by 2017. But Woodford (pictured) said the economy is yet to normalise, and consequently he predicts rates may still be at a historic low of 0...