In the meantime Brexit risk could weaken sterling, which is helpful to UK exporters and large companies with earnings from overseas such as pharmaceuticals, Buxton noted.
He said higher rates come with opportunities as well as risks. Banks he holds in his fund, such as Barclays, Lloyds Banking Group and HSBC stand to benefit from any rises, for example.
The weakness in manufacturing, exacerbated by an inventory cycle, may not drag services and consumption into recession Buxton said, as these issues are being offset by “the windfall of lower oil prices” which has put more money in consumers’ pockets.
