For example: (i) the repo rate was reduced by 425 basis points to 4.75 per cent, (ii) the reverse repo rate was reduced by 275 basis points to 3.25 per cent, (iii) the cash reserve ratio (CRR) of banks was reduced by a cumulative 400 basis points of their net demand and time liabilities (NDTL) to 5.0 per cent, and (iv) the total amount of primary liquidity potentially made available to the financial system was over 5.6 trillion or over 10 per cent of GDP.
We regard this level as appropriate in light of our updated projection for the economy and inflation—in particular, we expect inflation to reach our 2 per cent target in the second half of 2018. This is a little later than we projected in July, primarily because the Canadian dollar has strengthened in 2017.