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Mohamed El-Erian warns UK to walk back budget or ‘unleash bond vigilantes’

El-Erian suggests rewinding the basic cut to income tax, because 'that's the one that's really expensive'

By Penny Sukhraj
The UK needs to ‘to go back to first principle,' El-Erian said, since the major cause for this instability in his view ‘is the government announcing very large unfunded tax cuts’
The UK needs to ‘to go back to first principle,' El-Erian said, since the major cause for this instability in his view ‘is the government announcing very large unfunded tax cuts’ Photo: Hollie Adams/Getty Images

The UK should wind back from its promises to cut tax, renowned economist Mohamed El-Erian has warned.

Referring to another market intervention on 11 October by the Bank of England, the chief economic adviser at Allianz said in an interview with BBC Radio 4 that the UK “is on very shaky ground” when the Bank of England talks about financial stability.

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