Posted on October 21, 2015

How the Liberal win will affect interest rates, taxes and real estate

The majority win by Justin Trudeau’s federal Liberal Party in last night’s (October 19) election pushes Trudeau’s campaign promises of an overhaul of Canada’s tax system and increased infrastructure spending to the forefront, according to a TD Economics note to investors released October 20.

Sherry Cooper, chief economist for Dominion Lending Centres, said the unexpected majority win will lead to a rebalancing of economic policy in Canada.

“Monetary policy will now take a backseat to fiscal stimulus, ending a decade of doggedly balanced budgets and ever-lower interest rates,” Cooper said. “While much is yet to be determined, the Liberals will increase government spending, particularly for public transit, social and green infrastructure, running budget deficits for the next three years of up to an estimated $10 billion per year.

Click here to read more from this Business In Vancouver article.

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