Mark Carney in an interview with CNBC has said that recent weakness in the US economy was of some concern, but that Canada’s economy is back at it’s pre-recession peak both in output and employment.
The official opined that the extremely accommodative monetary policy in Canada has had an impact. Credit growth continued even through the recession, though he noted concern about household borrowing.
Mr Carney said the impact of any further QE from the U.S. Federal Reserve will depend on the reasoning behind it. If it is due to a renewed weakening in the U.S. economy “then we’ll deal with the direct consequences.” He added “obviously, we’ll adjust monetary policy to Canadian circumstances. There are limits to the divergence that there can be between Canada and the U.S.”
