The BoE risks making the UK's debt problem bigger if it raises rates above 0.5% in the near-term to tackle "one-off" inflationary pressures, says the head of portfolio management at Prudential.
Official figures, due out later today, are expected to show the UK consumer price index (CPI) stayed the same in December, at 3.3% year-on-year. The retail price index (RPI), which includes mortgage interest payments, is forecast to rise slightly above its current level of 4.7%. Both figures are significantly higher than the government's 2% target, and some members of the Bank's Monetary Policy Committee are calling for a 25bps rise in interest rates to counteract inflationary pressures. But Martin Brookes, director of Prudential's Portfolio Management Group and manager of its with...
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