Pimco preparing for ‘harder landing’ of global economy, says CIO

PACIFIC Investment Management Co (Pimco) is preparing for a “harder landing” while top central bank chiefs prepare to continue their campaign of interest rate rises, Daniel Ivascyn, chief investment officer at the US bond giant, told the Financial Times in an interview published on Sunday (Jul 7).

“The more tightening that people feel motivated to do, the more uncertainty around these lags and the greater risk to more extreme economic outlooks,” Ivascyn said, noting that when rates have risen in the past, a lag of five or six quarters for the impact to be felt has been “the norm”.

The market is “too confident in the quality of central bank decisions”, he added. REUTERS