Threadneedle's Brazier: Three threats to UK recovery

Threadneedle's Simon Brazier has revealed the three factors he believes could stall the UK's "muted economic growth".

  The group's co-head of UK equities says inflation, a slowdown in developing world growth and sovereign debt contagion remain the biggest threats to recovery. "The UK economy is like a man on tightrope holding a big bar and trying to balance fiscal consolidation with very loose monetary policy, but headwinds could tip the economy off its high wire," he said. Inflation coming from cost push could lead to interest rate hikes, according to the manager. "Mervyn King has been relatively relaxed about the inflation outlook but if he sees inflationary pressures continue and feels he n...