Fixed income portfolio manager Sri Tella discusses what he has been observing as the Canadian economy reopens and where new opportunities for investors are appearing. Sri reflects on the policy changes at the Bank of Canada and the Federal Reserve (the Fed) he has been observing, and considers how these changes will affect the Canadian bond landscape as the economy reopens. Sri believes the government is trying to provide more transparency regarding central bank and monetary policy, including measuring inflation and the ideal inflation rate. The average person is considering what he or she is spending money on – such as food – and believes prices will go up. However, inflation appears to be either in decline or stagnant. The big question is whether the Bank of Canada is measuring inflation appropriately, given the changes to consumption habits – which the Consumer Price Index is supposed to reflect.
Recorded on August 28, 2020.