09:24 AM EDT, 10/20/2025 (MT Newswires) -- When Canada's Liberal government announces its budget on Nov. 4, Rosenberg Research said it expects a deficit next year of between 2.3% and 2.6% of gross domestic product amid large increases in defense and infrastructure spending

This will provide a modest fiscal stimulus to Canada's struggling economy, noted the Rosenberg Research.

The Liberals are changing the budget process to facilitate more long-term capital spending by creating a separate capital budget, it stated.

Rosenberg also predicts more monetary easing ahead at the Bank of Canada, and any mild increases in the yield curve from higher borrowing will be far smaller than the bond-bullish implications of a lower policy rate.