LONDON Oct 6 Prime Minister Theresa May's
criticism of low interest rates and quantitative easing are
unlikely to have an immediate impact on Bank of England policy,
Allianz's Mohamed A. El-Erian told Reuters.
May said on Wednesday that while super-low interest rates
and quantitative easing provided some emergency medicine
following the financial crisis, there had been some bad
"In joining the expanding political bandwagon criticizing
banks and globalization, Prime Minister May's remarks suggest
that this phenomenon now extends well beyond campaign rhetoric,"
El-Erian, the chief economic adviser to Allianz, said.
"Her statements are even more notable because they come from
a country that has benefited enormously from economic and
financial internationalization, and from a government that, in
the aftermath of the Brexit referendum, was shielded from
unsettling financial instability by effective measures from the
Bank of England," he added.
When asked what the impact of May's comments would be,
El-Erian said: "The remarks are unlikely to have an immediate
impact on Bank of England policies. But they are part of a
broader warning that is applicable to central bank autonomy
around the world."
(Reporting by Guy Faulconbridge; editing by Stephen Addison)