Osborne must stay strong on cuts: Pimco's Amey

Pimco's Mike Amey believes Chancellor George Osborne must stick to his reduction plans outlined in the Budget despite fears the cuts could derail UK growth.

Amey, manager of the Allianz Pimco Gilt Yield fund, currently favours short-dated gilts on expectations of more QE to offset the impact of the cuts. "We have a double-digit government deficit, we have a stated plan to deal with that problem, and we want to see the Government keep to the message," Amey told Bloomberg. "The one thing the market would be wary of is a change in plan this early on. There's clearly concern over the profile of growth going forward. The Government should not change the game plan at the first sign of difficulty." The Chancellor's spending cuts are aimed...