On today’s episode we’re joined by two members of Fidelity Canada’s equity research team – analysts Brendan Cochrane and Andrew Hall. We’ve now heard that the Bank of Canada has raised its key benchmark interest rate by 50 basis points, to 1.5%. They signalled that more hikes are coming and that inflation is likely to go higher before easing. Today Brendan, Andrew, and host Pamela Ritchie, look at how much these rate hikes will impact consumer discretionary spending, and in which areas of consumer discretionary and staples can investors play defence? They will also discuss how consumers currently have strong personal balance sheets from increased savings and home equity appreciation, how the devaluation in the markets pose opportunities as earnings are still strong, and the probability of a wage-price spiral.

Recorded on June 1, 2022.

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