Outgoing Bank of Canada Governor Mark Carney says he owes much of his success to his Canadian roots, something he says was key to his selection as chief of Britainâs central bank.
In a candid interview with CTVâs Kevin Newman, Carney said he doesnât expect to change during his five-year term as the new Bank of England governor.
âIâm there because Iâm Canadian, because Iâve had the experiences that Iâve had and to bring a different perspective,â he said.
Carney, 47, said heâs looking forward to the new challenge that await him in England and has every intention of returning to Canada when his term is up.
âThis is where my friends are, this is obviously where my family is, and itâs just a natural,â he said. âThereâs a big challenge that Iâve been offered. Very much looking forward to it, it will be a great experience for our family as well. But in the end, Iâm Canadian and Iâll come back and bother you.â
Carney added that upon his return, he expects heâll be able to âface the consequencesâ for the choices he has made as Canadaâs top banker â primarily his decision to maintain rock-bottom interest rates in order to keep Canadians borrowing and allow banks to continue lending money.
The Bank of Canada and Minister of Finance Jim Flaherty have repeatedly raised concerns about the record-high level of household debt â on average at a debt-to-income ratio of 151 per cent â and what will happen when eventually interest rates begin to increase.
Carney maintains that when global economic demand collapsed in 2008, the economy was only being supported by âextraordinary fiscal measures.â
âSo we had to build demand here in Canada,â he said.
Carney said he now believes Canadians are heeding the message to lower debt.
âWhat weâve done successfully is weâve pivoted from stimulating household demand, (the) housing market and household borrowing for consumption, kept employment up and we pivoted to focus on investment and exports,â Carney said. âWhat weâre seeing without question is a very constructive evolution of Canadiansâ attitudes towards debt and towards the housing market. And it is moving towards a much more sustainable equilibrium.â