Source: The Canadian Press

Bank of Canada Governor Mark Carney says that weakness in the U.S. economy is of “some concern” to Canada, even though the domestic market is returning to pre-recession peaks in both output and employment.

The governor appeared on U.S. financial network CNBC to discuss Canada’s economic position, and outlined concerns that growth here could be hurt by further U.S. weakness, mostly because its Canada’s biggest trading partner.

Carney noted that if renewed stateside weakness causes further stimulus from the Federal Reserve then Canada will “deal with the direct consequences.”

He says that could mean adjusting monetary policy — such as interest rates — to reflect the circumstances in Canada.

Carney also said that Canada’s monetary policy has been “extremely accomodative” which has helped credit grow throughout the recession.

He did, however, note concern about the higher level of household borrowing in Canada.