Central banks risk a recession by raising rates to tackle Iran oil shock, strategist warns

Central banks risk a global recession by raising interest rates in a bid to contain soaring energy costs, an analyst has said. Julian Howard, chief multi-asset investment strategist at GAM Investments, warned that rate-setters are now "on the verge of policy mistake territory" as expectations of rate rises grow. Howard said that the traditional response to rising energy costs — ramping up borrowing costs — is an error given the supply-side nature of the energy price shock. …