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Behind the Screens: The lag of monetary policy

23 Jun, 2023 | Return|

"Monetary policy and interest rates work with a lag. Monetary policy takes 18 months, it took them a long time to create the policy and it will take a while for the inflation to come down. The central bank is determined to get it back down to 2%, and there are signs that the monetary policy is working..."

Richard Woolnough, manager of the A-rated M&G Optimal Income and M&G Corporate Bond funds, was in the Behind the Screens hot seat this week sharing his thoughts on:

  • Signs the substantial tightening in monetary policy is working, despite inflation remaining stubbornly high.
  • Why the breadth and depth of opportunities in the fixed income world has expanded.
  • Why the big out of the field events are the ones which cause increase inflation and reduce growth.

Listen to the Behind the Screens on your favourite platform here, or listen below.


Don't have time to listen to the full episode, jump to your favourite part:

  • 00:45 - What is the investment case for the UK?
  • 02:55 - What discount is the UK running at?
  • 04:30 - Where are you seeing the valuation opportunities?
  • 06:05 - What keeps you awake at night?
  • 07:30 - Is the rotation to value here to stay?
  • 11:30 - How do you split your day?
  • 13:50 - What are the current themes running in the portfolio?
  • 18:25 - What is your interesting statistic of the week?

This podcast was recorded on Wednesday 21st June 2023. This podcast is only aimed at professional advisers and regulated firms and should not be passed on to or relied upon by any other persons. It is not intended for retail investors, who should obtain professional or specialist advice before taking, or refraining from, any action on the basis of the podcast, remembering past performance is not an indication of future performance. It is published by, and remains the copyright of, Square Mile Investment Consulting and Research Ltd. Square Mile makes no warranties or representations regarding the accuracy or completeness of the information contained herein. This podcast represents the views and forecasts of SM at the date of issue and may be subject to change without reference or notification to you. Nothing in this podcast shall be deemed to constitute a regulated activity or an invitation or inducement to engage in investment activity and it is not a recommendation to buy or sell any funds or investments that are mentioned during this podcast.


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