Rising inflation expected to fuel further rate rises in UK

The rise in Consumer Price Index (CPI) inflation last month to 3%, the highest in 11 years, is expected to spell further interest rate rises this year, fund managers predict. This follows the 0.25% rate rise to 5.25% in January, which the Monetary Policy Committee (MPC) judged was necessary to bring CPI inflation back to target in the medium term. Ed Collins, manager of the New Star UK Dynamic fund, believes there could be a further interest rate rise this year. But he says: "I think we are reaching the end of the cycle of rises." Ted Scott, manager of the F&C UK Growth & Income fund,...