MPC raises UK interest rates by 25 basis points

Small companies are continuing to outperform on a global basis but have lost momentum in the UK comp...

Small companies are continuing to outperform on a global basis but have lost momentum in the UK compared with large caps, says Mike Lenhoff, chief strategist at Brewin Dolphin Securities. While he notes that the loss in momentum in UK small caps may prove to be temporary, and it is possible that valuations have swung in favour of large caps, he feels a more relevant consideration is that the slowdown reflects an expectation that UK interest rates will rise faster than in the rest of the world. The Monetary Policy Committee (MPC) raised rates for the time since 2000 last week, a 25 basis p...