UK economy may not withstand interest rate rise – S&P

Ratings agency issues warning after surveys show businesses have not recovered from weak first half of year

The ratings agency Standard & Poor's has warned that Britain's economy may not be strong enough to support an interest rate rise following hints from policymakers that there could be an increase in the cost of borrowing next month.

S&P said it was sceptical that the Bank of England could justify a rate rise after recent business surveys showed an expected recovery from a weak first half of the year had failed to materialise.