Slowing economy good for UK growth stocks

HSBC Asset Management is forecasting UK GDP growth of 3% this year, which the group sees as a favourable background for growth stocks. The investment house also believes UK interest rates will be cut by 25 to 50 basis points during the second half of this year from the current level of 6%. Favouring growth, the group is now keen on areas including media and technology on valuation grounds. Credit Suisse Asset Management is also bullish on the outlook for UK growth stocks in the belief interest rates are set to fall over the next six months. Phil Harris, UK smaller companies fund manager...