Interest rate hike could derail recovery - Papers

Accountants BDO said growth would remain sluggish and any imminent rate rise could prolong the weakness, writes the BBC. With inflation at twice the Bank of England's 2% target, many economists say a rate rise soon is highly likely. But BDO's business report said manufacturing could be hit, as a rate rise would strengthen the pound and reduce export competitiveness. It said confidence in the manufacturing sector had risen to a seven-month high during February, with the BDO Optimism Index reaching 95.5. But despite the rise, it said medium-term prospects still looked bleak, with ...