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.
Canada’s real-return bonds are outperforming other debt as investors buy inflation protection after the Bank of Canada halted its interest-rate increases and the U.S. central bank signaled further debt purchases.
Quebec Finance Minister Nicolas Marceau said the province will keep a pledge to eliminate its deficit for the first time in four years by raising income and consumption taxes and capping infrastructure spending, in a budget that drew immediate criticism from opposition lawmakers.
The Canadian dollar fell from almost a two-week high against its U.S. counterpart as Bank of Canada Governor Mark Carney was named chief of the Bank of England, spurring speculation over who will replace him in Ottawa.
Bank of Canada Senior Deputy Governor Tiff Macklem has emerged as the front-runner to succeed Mark Carney as head of the central bank as it grapples with slowing growth and record consumer debt levels.
Employment and housing figures released today confirm that Canada’s economy is cooling faster than the central bank had forecast, indicating the Bank of Canada will refrain from raising interest rates until next year, economists said.