Mark Carney's Liberal Party wins Canadian election but loses majority seats
According to Jin Shi data, Mark Carney's Liberal Party has won the Canadian election but lost its majority seats. Capital Economics economist Stephen Brown believes the Liberal Party will continue to govern and implement moderate stimulus policies.
He expects Canada's GDP growth to slow significantly but can almost avoid recession. Carney may need to make concessions to the minority New Democratic Party or the Bloc Québécois, which could mean looser fiscal policies.
This may cause economists to question the Canadian central bank's view that it will cut interest rates three more times this year, potentially preventing a significant drop in the Canadian dollar and bond yields.
