You have to look at it from two different spectrums: fiscal policy and social policy. In Canada, what you'd get is this:
Fiscal Policy:
NDP: Far Left
Liberal: Centre-left to Centre-right
Conservative: Centre-right
Social Policy:
NDP: Far Left
Liberal: Centre-left
Conservative: Centre-right to Far-right
Also keep in mind that those definitions only work from the perspective of a Canadian. To an American voter, all our parties would look far-left on fiscal policy and centre-left to far-left on social policy. To many Europeans, the NDP would appear centrist and both the Liberals and Conservatives would appear centre-right to far-right, depending on the issue.
So to call the Liberals centrist isn't that much of a misnomer, since they brand themselves as being a party of moderates whose policies are between the so-called "extremes" of the NDP and the Conservatives.
[Edit]
Historically, the Liberals have also slightly shifted their style depending on whether they're in power or in opposition. When they form the government, they tend to be more centrist, and in opposition they tend to be more left-wing.
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