Higher interest rates to force UK back into recession?

Higher interest rates to force UK back into recession?
If interest rates increase too much, it could force the economy back into recession, experts have warned, which would mean more difficult times ahead for contractors and other professionals.

David Coombs, manager of the Rathbone Multi-Asset Portfolios has announced that the economy will not withstand an interest rate increase of more than one per cent.

However, Michael Baxter, editor of InvestmentandBusinessNews.co.uk, said that he does not believe interest rates rising by just one per cent would put the UK back into a recession.

"I think I'm right in saying that if the markets are right then interest rates could be up 2.5 per cent in a year or so. I think that would send us back into recession," he added.

In other news, trade unions have predicted that 50,000 job losses would occur within the NHS this year.

The Recruitment and Employment Confederation (REC) has warned that this will have an adverse effect on locum and temporary staff, saying they are the "hidden casualties" of the cuts.
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