M&G's Woolnough: Policymakers should raise rates this year

M&G's highly-rated bond fund manager Richard Woolnough has said he would raise rates this year if it were up to him - but said such a move could present a buying opportunity.

Woolnough said both central banks could act and put rates up this year as the recovery globally continues, and as recovering housing markets in the UK and US put pressure on rate-setters. "If I was at the Bank of England or the Federal Reserve I probably would put rates up," he said. "The world economy is strong, and within the UK and US we think the housing markets are strong, and eventually this will put pressure on rates. Woolnough said ideally the Fed would take the lead and carry out a surprise rate hike at some point this year, creating a buying opportunity for his portfolio....