S&W's Frikkee: China fallout should curb rate hikes

Manager urges Fed to wait

Smith & Williamson's Tineke Frikkee is protecting her UK Equity Income fund from the downside risk of rising interest rates, as she questions whether the time for a hike has come, in the wake of August's volatility.

The former Newton manager said if the Federal Reserve raises US interest rates this month it is likely to be a minimal move of just 25 basis points, but warns the market is still vulnerable to shocks following China's market falls last month. Her comments come before the US Federal Open Market Committee (FOMC) meets on 16-17 September to decide whether to raise interest rates, or follow the Bank of England's decision earlier this month to keep its base rate at 0.5%. She urged the Fed to wait and see if last month's renminbi devaluation and the biggest one-day fall in the Chinese stock...