China Move Shows Double-Dip Is Remote: Doll
The move by China to allow a more flexible exchange rate for its currency shows that the danger of a double-dip recession is remote, Bob Doll, BlackRock vice chairman, told CNBC Monday.
The yuan jumped Monday, after Chinese authorities announced at the weekend that they will allow the currency more flexibility.
"I think the Chinese situation over the weekend is maybe another indication that we're not going to have a double-dip. Double dips are pretty rare," Doll said in an interview.
"I don't think the Chinese would have moved forward if they were lacking confidence that the world economy was OK," he added.
Central banks will wait "for a while longer" before unwinding extraordinary measures put in place at the beginning of the crisis because of Europe's debt crisis, Doll said.
Earlier Monday, ING Bank analysts wrote that the single European currency could take another hit because of talk of creating a "two-tier" euro zone.
The situation in Europe will determine whether the Federal Reserve's Monetary Policy Committee leaves policy largely unchanged when it meets later this week, Doll said.
BP's oil spill was also contributing to the recovery being slower than usual, not only because of its economic impact but also because of its psychological consequences.
"The consumer doesn't like that headline all the time," Doll said.
He said he expects economic growth to be close to 3 percent this year, compared with other analysts who are estimating 2 percent, characterizing his view as "cautious optimism."
"I'm not expecting an ebullient recovery," Doll said, but added that he does not expect a double-dip recession.
"I think there are enough positive signs that we'll get through this," he said.
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Disclosure information was not available for Robert Doll or his company.