Brazier warns 'high risk' of UK double dip

Threadneedle's head of UK equities Simon Brazier has warned the chance of the UK sliding back into recession is high, but said market short-termism represents an opportunity not a threat.

Brazier sees a number of "storm clouds on the horizon", ranging from higher levels of inflation to sovereign debt contagion or a global slowdown, and said UK GDP growth of 1.5% per annum over the next four to five years would be "a great result" for the economy. "The risk of being tipped into a double-dip recession is relatively high", he said. "The consensus at the start of the year was for 2011 GDP growth of 2.5%, but the market consensus is now below 2%". The manager believes the Bank of England will not raise interest rates this year, and said the absence of significant wage infla...