Interest rate rise could weaken fragile economy

Upping interest rates could badly affect the British manufacturing industry. Strengthening the pound could lower competition in the export market. Raising interest rates over the next two months could force the economic recovery to run off course, according to a new report. Accountancy network BDO said that economic growth will remain slow and hiking up interest rates could prolong the weakness. It added that the UK's manufacturing sector would be particularly hard hit - a rate rise would strengthen the pound and therefore reduce export competition with other countries.