Timing of rate hike likely to drive pound's direction

LESS than six months ago, the UK economy looked confident that it was on its way to recovery. However, after a wave of growth jitters and a steep correction of near 40 per cent in the Chinese equity markets, the road to recovery appears to be in question.

Individual economies have become increasingly interlinked, with coupling of global markets developing into the norm rather than the exception. The worries in China…