Bank of Canada governor Mark Carney said Friday the slowdown in the U.S. recovery is of “some concern” to the central bank and whatever unfolds will have a “significant” impact on this country’s economy.

In an interview with U.S. business network CNBC, he said the low level of U.S inflation — due to a debt overhang and slowing growth — may prompt the U.S. Federal Reserve to take further measures, such as another round of asset purchases.

“We will deal with the consequences” of any Fed decision on so-called additional quantitative easing, said Mr. Carney, in an interview conducted at the Canadian Museum of Civilization in Gatineau, Que.

“We will adjust monetary policy to Canadian circumstances, but there are limits to the divergence that there can be.”

While expressing concern about the tepid pace of U.S. economic growth, he added the central bank is keeping an eye on the record level of household indebtedness — which some analysts have suggested will push the Bank of Canada to continue raising rates even in the face of an economic slowdown.

“We are concerned about the level of household borrowing, yes,” he told the CNBC interviewer. The ratio of debt-to-disposable income among households is at over 140%, or a record high.

Mr. Carney’s comments about the slowing economy emerge after a string of weak economic data, from inflation to retail sales, were released this week. Some analysts are speculating that the Canadian economy may have contracted in July, based on indicators released to date, and that is could slowing at a faster pace than the United States.

The central bank governor said circumstances are different in Canada, as economic output has returned to pre-recession levels and that financial conditions remain “exceptionally accommodative.” This is why the central bank raised its benchmark rate by 25 basis points earlier this month, to 1%.

But what was transpiring in the U.S. marketplace — with new home sales stuck at near-record lows — was worrisome and the Bank of Canada would monitor events closely.

“The nature of the slowdown … is particularly concerning for Canada given the concentration in areas such as housing and autos — parts of the economy that are really leveraged to Canada,” the governor said.

Meanwhile, Mr. Carney also addressed the state of global financial reforms, as agreed to by Group of 20 leaders.

He said the coming new banking rules on capital, otherwise known as Basel III, are required to bring stability to financial markets.

“The system was horribly undercapitalized,” he said of the regime that ultimately led to the financial crisis.

And on increased currency flexibility, especially from Asian countries — most notably China — he said that this point, the talk of liberalized exchange-rate policies is more of a “slogan but not a reality.”