Only ‘economic accident’ would cause central bank rate pivot: Allianz adviserBloombergMohamed El-Erian has a cautionary word for anyone anticipating an end to interest-rate increases from the US Federal Reserve and other central banks. “All of you who are looking for a pivot, be careful what you wish for,” the Allianz SE chief economic adviser and Gramercy Funds chairman said on Friday. “This pivot only happens if you have an economic accident or a financial accident, and the journey to an economic accident or a financial accident is a very painful journey,” he said. Allianz SE chief economic advisor Mohamed El-Erian speaks at an event in Cambridge, England, on Nov. 25 last year. “That tension is playing out not just at the domestic level but the international level.”The Bank of England was not the only central bank that has intervened in markets recently, as the Bank of Japan moved to shore up its currency against a soaring US dollar.

Source: Taipei Times October 03, 2022 04:36 UTC