Woodford: Developed world in 'no fit state' to handle rate rises

US move should be reversed

Prominent fund manager Neil Woodford has said it would be "ludicrous" for the Bank of England to raise interest rates anytime soon, while the US should reverse its December move.

In an interview with BBC Radio 5 Woodford (pictured), manager of the £8.1bn CF Woodford Equity Income fund and founder of Woodford Investment Management, said there is too much room for policy error if rates were raised. "There are economic threats because growth is so slow globally. Rates going up in the US was a mistake and for UK rates to go up anytime soon is ludicrous, the UK economy could not withstand higher rates.  "[A 0.25% rise] would not make much of a difference but the message it conveys, that we are at the start of a tightening cycle, would have serious sentiment effects...