We used to think potential growth was close to 4%, and more with brave reforms. The IMF suggests it is about 2 to 2.5% and we fall short of that. We need to reorient households, firms and investors on longer-term targets, and to be clear about the policy settings needed to achieve them.
Hence, the repo market supports the functioning of crucial cash markets. In sum, the repo market is considered a core funding market in Canada, because it represents a major source of funds for financial institutions.