07:34 AM EDT, 05/02/2025 (MT Newswires) -- Former central bank governor Mark Carney won Monday's Canadian elections for prime minister, though with only 169 seats projected, his Liberal party is just short of the 172- seat majority threshold, sai UBS.

However, the bank expects PM Carney to be able to get other parties on board to decide on his planned fiscal measures.

As Carney is now backed by an electoral mandate, UBS thinks trade negotiations with the United States can accelerate further.

Carney's planned increase in domestic fiscal

spending, if enacted, would help dampen recession risks, while also offering the Bank of Canada some headroom on policy as it weighs both growth and inflation risks, added UBS.