Even though our financial system is solid, it is important to take further steps to bolster its ability to absorb shocks. The creation of a central counterparty for the repo market is a step in that direction. With your permission, I will now turn to the crucial role played by the repo market in Canada.
This morning's report on retail sales, together with the information on motor vehicle sales released last week, points to a solid rise in real consumer spending in March and a very strong reading for the first quarter as a whole. The outlook for moderate increases in personal consumption expenditures in the near term is consistent with the latest readings on consumer sentiment.