Mohamed A. El-Erian , Columnist

UK Rate Fever Needs a Broader Prescription

The Bank of England can’t go it alone. Government initiatives and improved public-private partnerships will be required as well.

July 7, 2023 at 4:00 AM UTC

By Mohamed A. El-Erian

Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”

Rising mortgage costs are amplifying concerns about the availability of affordable loans.
Photographer: Chris Ratcliffe/Bloomberg

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Interest-rate fever has gripped the UK for valid reasons. It will worsen before subsiding, posing substantial risks of collateral damage and unintended consequences. And it highlights the urgent need for a policy response that goes well beyond the Bank of England.

Three developments that were previously confined to specialized financial media outlets are now being discussed widely in UK society and beyond.