El-Erian Says Policy Makers Unlikely to Increase Rates in 2012 via Bloomberg

Policy makers are unlikely to raise borrowing costs in 2012, with benchmark rates to stay at or close to zero in the U.S. and Europe, according to Pacific Investment Management Co.’s Mohamed A. El-Erian.

Pimco advises investors stay in the five- to nine-year range in bonds for safety and to earn income, El-Erian, chief executive and co-chief investment officer of the world’s biggest manager of bond funds, said in a radio interview today on “Bloomberg Surveillance” with Tom Keene and Ken Prewitt.

“You’ll see policy rates in the U.S. and Europe floored at or near zero,” Newport Beach, California-based El-Erian said in the interview. “I don’t think there will be any appetite or need to raise interest rates in the U.S. and Europe.”

Read more...El-Erian Says Policy Makers Unlikely to Increase Rates in 2012: Tom Keene - Bloomberg