The Canadian Investor Gold, Interest Rates, and the Macro Outlook with Bipen Rai
Dec 22, 2025
Bipen Rai, Managing Director at BMO Global Asset Management, dives into the macroeconomic landscape and the role of gold in investment portfolios. He explains why gold is set to rally due to supply and demand dynamics, and discusses its potential as a bond alternative. Bipen also shares insights on the impact of recent Fed policies, the uncertainty in bond returns, and the attractiveness of sectors like healthcare and Canadian banks. He compares Bitcoin to gold, highlighting the latter's reliability as a store of value amid market volatility.
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North American Rate Divergence Tightens
- The Bank of Canada appears done easing for this cycle given recent cuts and current data.
- The Fed paused but signaled slower cuts and said policy rates sit near plausible neutral estimates.
Fed Buying Is Technical, Not QE
- Fed purchases of T-bills and up-to-3-year Treasuries are technical plumbing moves, not QE.
- These operations smooth repo and reserve functioning, not restart large-scale asset easing.
Fed Chair Is Influential But Not Omnipotent
- A Fed chair matters but is one vote among many on the FOMC, limiting unilateral shifts.
- Markets often overstate the chair's power versus the committee voting dynamic.