Quebec Finance Minister Carlos Leitao maintained a goal of balancing the budget next year, and said deficits this year and last will be larger than planned as revenue misses forecasts and spending climbs.
Quebec voters gave a majority mandate to the Liberal Party, led by neurosurgeon Philippe Couillard, after an election campaign focused on fears the separatist Parti Quebecois would seek another vote on splitting from Canada.
Canada’s dollar gained for a second consecutive month, reaching parity with its U.S. counterpart for the first time since April, on speculation an easing of monetary policy by the Federal Reserve will spur global growth.
Canada’s government bond returns are lagging behind the rest of the world this month for the first time since July as investors bet the nation’s central bank may increase interest rates sooner than analysts expected.
Credit markets indicate investors are becoming certain the Bank of Canada will raise interest rates at a second consecutive meeting after the country posted the largest quarterly gain in employment on record.