Warning UK economy will 'fall off a cliff' if BoE raises interest rates by 0.5%-1%

Rates expected to rise in November

Richard Hallett, manager of the £199m Marlborough UK Multi-Cap Growth fund, has said he is "worried" about the UK, pointing to Brexit uncertainty, weak consumer confidence and rising debt levels due to the low interest rate environment.

The manager said there would not be a return to interest rate normalisation because of the amount of consumer debt in society and the level of government debt central banks have under their control.  Instead, Hallett said he expected Bank of England Governor Mark Carney to hike rates once this year due to rising inflation and the fact his "credibility was on the line". This is in line with market expectations, which have priced in an 84% chance of a rate rise in November, from the current record low of 0.25%. Last month, Carney refused to rule out a rate rise before the end of 2017...