Invesco's Walker bearish on UK growth for coming year

Invesco Perpetual's UK equities manager Martin Walker is taking a bearish stance on the UK economy fo...

Invesco Perpetual’s UK equities manager Martin Walker is taking a bearish stance on the UK economy for 2008, predicting consumer confidence will be low and economic growth could be below 2%. The shakiness in the markets as a result of the credit crunch means there is less liquidity in the financial system, and what is available looks expensive, Walker said. “We believe lending rates will probably rise and that even if the Monetary Policy Committee reduces UK interest rates, there is a good chance not all of that rate reduction will pass through to consumers. If we add this to other concern...