MONTEBELLO, Que. - Prime Minister Stephen Harper says Canada's basic economy remains strong despite the turmoil that has rocked financial markets in recent days.
In his first public comment on the financial difficulties, Harper said government watchdogs are monitoring the situation closely. The prime minister is also an economist.
"I can assure you that the position of the Canadian financial sector, in particularly our banks, Canadian companies in general and the household sector, our capital positions are very strong,'' he said at a news conference at the conclusion of the Canada-U.S.-Mexico summit.
He said market fluctuations are routine.
"It's normal for the price of assets of various securities, or companies, or whatever, to go up and down in the marketplace. It's not unusual.''
Uncertainty in the market for commercial paper, or short-term corporate loans, and related troubles in the U.S. subprime mortgage business have upset global markets in recent weeks. That has prompted central banks, including the Bank of Canada, to intervene with loan injections to ensure a healthy level of credit availability to corporations.
