As the brand new 12 months beckons, it’s a very good time to mirror on the most important financial and enterprise tales of the 12 months that’s about to finish. To maintain the duty manageable, the main target right here is proscribed to Canada and B.C.
One stunning growth in 2019 was the return to a interval of falling rates of interest.
When the 12 months started, most financial forecasters had been anticipating each the Financial institution of Canada’s coverage price and market-based rates of interest to proceed creeping increased, on the heels of earlier price will increase in 2018.
As an alternative, the rates of interest going through savers and debtors dropped during the last half of 2019 – not simply in Canada, however within the U.S. too.
As of late November, the market yield on 10-year bonds issued by the federal authorities stood at a paltry 1.6 per cent.
With inflation operating round two per cent, this implies patrons of 10-year authorities bonds are locking in a adverse return after inflation. That might look like an unappetizing funding. But there isn’t a scarcity of demand for presidency bonds yielding microscopic returns.
One other notable story in 2019…