Wednesday’s reversal by the Bank of England, where it announced it would start buying bonds to ease market stress, shows central banks’ tie-ups today and the market could end ended with a more difficult landing, Mohamed El-Erian said on Wednesday. “The longer you stay in this lavish land of QE (quantitative easing),” said Allianz economic adviser and former Bond CEO. funny cards, distorted asset allocation… the harder it is to get out,” economic adviser Allianz and former bond CEO told giant Pimco on CNBC’s “Squawk Box” shortly after the announcement. The central bank said it would start temporarily buying long-term British government bonds “of whatever size necessary” to appease markets. “This is dealing with the risk of a market glitch,” said El-Erian. “It goes against what they need to do to fight inflation, so it highlights the inconsistency of monetary policy. … It’s about to do QT (quantitative tightening) … it announced it was going to go up even more… and now it’s pumping liquidity.” The pound fell to a record low against the US dollar, leaving markets bewildered about a money crunch. domestic currency and help push global stock indexes deeper into bear market territory. The S&P 500 index hit a new 2022 low on Tuesday. While El-Erian said the US could benefit in the short term from this move by the Bank of England as investors seek a global safe-haven, he said the Fed could fall into a recession. The situation is similar when it comes to choosing between fighting inflation and calming the market. . The Bank of England’s latest action shows “the fragility of markets” and how we must reduce our reliance on central banks as a whole, El-Erian said.