Exclusive Exclusive: Pimco Expects Bank of England to Ease Rates

The world’s largest private bond buyer, Pimco, expects the Bank of England will ease its interest rate policy in response to Britain’s decision to leave the European Union. “T he Brexit vote forces central banks to continue and potentially even extend their easing measures, ” Mark Kiesel, Pimco’s chief investment officer for global credit, told Handelsblatt. “ Although the Bank of England has not changed its policy rates last week, we expect them to ease soon, ” Mr. Kiesel said. The Bank of England surprised investors by deciding to leave interest rates steady at 0.5 percent. Mr. Kiesel said the European Central Bank “ will most likely extend its q uantitative e asing program. “ The ECB has expanded its bond-buying program from $20 billion to $80 billion per month. In June, it began buying corporate as well as government bonds. Pimco doesn’t plan to add corporate bonds to its portfolio. “ We try to avoid buying bonds at prices that are subsidized by central banks, ” Mr. Kiesel said. Read the full story in Wednesday’s Handelsblatt Global Edition Picture Source: Joe Giddens/PA Wire