During the market disruption in 2007–08, the significant leverage deployed through these channels, and the operation of the associated mark-to-market triggers, clearly contributed to the disruptions in the loan market, and to the losses experienced by banks and other market participants.
In 2017 we can look forward to real GDP growth which is close to the economy’s medium term potential growth of around 5 percent per annum. With inflationary pressures firmly under control we can also be confident that annual core inflation will continue to trend around our medium term target of 5 percent. Thank you for listening. 5