What does the election mean for Canada's economy and markets?

Although the Liberals have just missed out on a majority, Prime Minister Mark Carney should still be able to implement his fiscal plans with support from the NDP or Bloc Québécois. If anything, the need to grant concessions to those parties means fiscal policy could end up even looser than the Liberals have signalled. That presents a modest risk to our view that the Bank of Canada will cut another three times this year, which would probably prevent the loonie and bond yields from falling by as much as we anticipate.