Bridgewater’s Dalio sees low rate cycle ending soon

Ray Dalio, Founder, Co-Chief Executive Officer and Co-Chief Investment Officer, Bridgewater Associatesr attends the annual meeting of the World Economic Forum (WEF) in Davos

(Reuters) – Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, said the changing stance from global central bankers to raise interest rates signals the end of the low rate cycle.

Dalio said in a blog post on LinkedIn that the actions of the central bankers signal that we are in “the beginning of the late-cycle phase of the business/short-term debt cycle, in which central bankers try to tighten at paces that are exactly right.” (

Minutes released on Thursday from the European Central Bank meeting fanned expectations of an unwinding of central bank stimulus, while the minutes released on Wednesday of the most recent U.S. Federal Reserve meeting showed some policymakers favoring a reduction of the balance sheet within a couple of months.

Dalio said he does not expect a big debt bubble bursting any time soon.

(Reporting by Parikshit Mishra in Bengaluru; Editing by Bill Trott)