Kames' Roberts: Delayed rate hike could spark 1970s-style inflationary shock

Kames Capital's David Roberts has warned delaying an interest rate hike any longer could cause the kind of inflationary shock last seen in the UK more than thirty years ago.

The head of fixed income (pictured) said rates should be raised sooner rather than later, and warned central bank complacency could lead to inflationary shocks and market bubbles. "Raising rates right now is a sensible thing to do," he said. "The market is becoming too complacent again in that respect, but not doing anything is a material risk to the economy." The increasing probability of a ‘yes' vote in the Scottish referendum next week has weakened sterling, which could prompt further inflationary pressure within an economy that is already recovering healthily, Roberts argued. "...