Woodford IM warns on 'policy error' if rates rise too soon

Economic data from US and UK not strong enough

Woodford Investment Management has expressed concern the US and UK markets are not ready for interest rate increases.

In the July update for its flagship £6.7bn CF Woodford Equity Income fund, the group said economic data coming out of the two economies is not strong enough to justify a rate rise. As a result, the group is increasingly worried about the possibility for a policy mistake if central banks decide to raise interest rates too soon. The note said: "Sighs of relief over Greece were replaced by growing concerns about the interest rate cycle in both the US and the UK, where central bankers appear to be preparing markets for rate hikes in the months ahead. "We are not convinced that macroeco...