Investment Conundrums: BlueBay's Riley on the move away from the 'great moderation regime'

Inflation above target

Elliot Gulliver-Needham talks to BlueBay’s chief investment strategist about his outlook for inflation

The world is moving away from the "great moderation, lowflation regime", as inflation becomes persistently higher and climate change increases volatility, warned BlueBay Asset Management's David Riley. Riley, who is chief investment strategist for BlueBay, said that while we will not return to the 1970s, the era of "low inflation, low growth, low volatility" is coming to an end, with central banks struggling to respond. Riley noted this is not an "easy environment" for policymakers, due to the "unique nature of the recession and the unique nature of the recovery". Inflation He sa...