July 2 (Reuters) – Pacific Investment Management Co (PIMCO) is preparing for a “harder landing” as top central bank governors prepare to continue their rate-hiking campaign, Daniel Ivascyn, chief investment officer at US bond giant Financial Times, said in a interview published on Sunday.
“The more people feel motivated to tighten, the greater the uncertainty about these lags and the greater the risk of a more extreme economic outlook,” Ivascyn told the FT, noting that rate hikes have historically been delayed of five or six quarters unless the effects felt were “the norm.”
The market is “overconfident in the quality of central bank decisions,” he told the Financial Times.
Reporting by Jahnavi Nidumolu in Bengaluru; Edited by Muralikumar Anantharaman
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