Economy will continue to slow despite rate cuts

Despite recent cuts in interest rates, Bill Mott, manager of the Credit Suisse UK Equity Income fund, predicts the UK economy will continue to slow. Mott believes the production side of the UK economy is now so small that any pick-up in global activity will have only a minimal impact on the UK economy as a whole. As a result, he says, future economic growth will be driven by public sector spending. However, the current round of public spending appears to be having little effect other than to increase public sector wage inflation, Mott notes. 'Public sector spending will come at...