Pimco Says ‘Rate Hikes Will Be Some Time in Coming’ (Wes Goodman)

  June 9 (Bloomberg) -- Pacific Investment Management Co., which runs the world’s biggest bond fund, said the economic outlook “looks bad” for most of the world and central banks will refrain from raising interest rates.

  “Rate hikes will be some time in coming,” Andrew Balls, a managing director for the company in London, wrote in a report on the company’s Web site.

  Signs of recovery in economies around the globe point to a slower pace of decline rather than recovery, Balls wrote. The outlook over the next three to five years is for “weaker global growth and especially weaker growth in the developed countries,” he said.

  Pimco’s view echoes those of the Wall Street firms that trade directly with the Federal Reserve, who say bets on higher interest rates will turn out to be wrong. Fifteen of the 16 so- called primary dealers surveyed by Bloomberg News said they don’t expect the central bank to raise the target rate for overnight loans between banks this year.

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