Budget 2011: Fund managers warn UK downgrade still 'optimistic'

A downgrade was widely expected so markets did not react strongly when the Office for Budgetary Responsibility slashed its forecast from 2.1% to 1.7% for 2011. However, Threadneedle’s co-head of UK equities Simon Brazier believes even 1.7% growth is still short of the mark. “We only expect 1.4% GDP growth in the UK this year. We have been saying for some time the OBR’s forecast looks too optimistic anyway. We always thought there would be significant downside risks to the target.” He expects there will be yet another readjustment in November when the forecast may be revised down lo...