LONDON (AFX) - The UK economy could slide towards recession if the Bank of England raises interest rates at a time when share prices are tumbling, according to the Centre for Economics and Business Research, the well-respected private consultancy. It said the savings ratio may rise up to 7 pct in 2003 if share prices were to fall by 20 pct and property prices by 10 pct from levels at the end of June. This could wipe 18 bln stg off consumption and could mean growth falling to 0.2 pct next year and possible recession, the CEBR said. "The threats to consumer confidence this summer come largely from the financial markets," said CEBR consultant Angus McCrone. "Concerns about accountancy fraud and corruption also cause some to question the very basis of their recent prosperity," he said. McCrone said estimates suggested that British households own about 1.7 trln stg worth of equities, and the June stock market slump will have reduced balance sheet wealth held in shares by around 30 pct below the peak in 2000. But the CEBR added that the bleak scenario was by no means its central forecast, repeating its quarterly prediction of 2.1 pct economic growth in 2003. "This is dependent on wise action from the Bank of England, which must avoid sinking the housing market at the precise moment when shares are falling," it said. It did not specify how much rates would need to rise by to push the economy to the cusp of recession.