MNI BRIEF: Geopolitical Borrowing Option Responsible- Carney

Prime Minister Mark Carney said Thursday that Canada's option to borrow CAD95 billion in case of a geopolitical disruption this fiscal year is part of good planning amid the trade dispute with the U.S. and global military conflicts. 

“Any responsible government makes contingency plans. The world is in a trade war that is running a risk of a global recession,” Carney said in response to a question from MNI. “I’ll quote the Chair of the Federal Reserve this week who highlighted the risks of stagflation.”

“The world is in the middle of a trade war and several wars, actual wars, including wars that can have quite significant implications for commodity prices, global growth, aside from the human cost,” Carney said. 

MNI reported earlier on a document showing cabinet approved the "contingency margin" because of geopolitical risks and officials discussed how it might be used. Carney said he hadn't seen that exact document and in jest turned to his finance minister at the press conference to ask "what kind of shop are you running?" Carney took over as prime minister from Justin Trudeau March 14, pledging an "elbows up" stance against Donald Trump's threats of using economic force to make Canada the 51st State. (See: MNI: Canada Approved CAD95B Geopolitical Contingency Borrowing)